Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Answer ASAP, direct thumbs up Question 8 On January 1, 2017, Culver SA purchased the following two machines for use in its production process. Machine

image text in transcribedimage text in transcribed

Answer ASAP, direct thumbs up

Question 8 On January 1, 2017, Culver SA purchased the following two machines for use in its production process. Machine A: The cash price of this machine was 50,300. Related expenditures included: sales tax 3,600, shipping costs 300, insurance during shipping 80, installation and testing costs 1,400, and 170 of oil and lubricants to be used with the machinery during its first year of operations. Culver estimates that the useful life of the machine is 4 years with a 5,100 residual value remaining at the end of that time period. The recorded cost of this machine was 189,540. Culver estimates that the useful life of the machine is 5 years with a 14,580 residual value remaining at the end of that time period. Machine B: Calculate the amount of depreciation expense that Culver should record for Machine B each year of its useful life under the following assumption. (Round answers to O decimal places, e.g. 2,125. Round cost per unit to 2 decimal place, e.g. 1.25.) (1) (2) (3) Culver uses the straight-line method of depreciation. Culver uses the declining-balance method. The rate used is twice the straightline rate. Culver uses the units-of-activity method and estimates that the useful life of the machine is 24,300 units. Actual usage is as follows: 2017, 5,000 units; 2018, 8,500 units; 2019, 6,700 units; 2020, 2,600 units and 2021, 1,500 units. 2017 2018 2019 2020 2021 Straight-line method Declining-balance method Units-of-activity method

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

ISE Managerial Accounting Creating Value In A Dynamic Business Environment

Authors: Ronald W. Hilton, David Platt

13th Edition

1265046794, 9781265046798

More Books

Students also viewed these Accounting questions

Question

Describe Yaloms therapeutic factors for group psychotherapy.

Answered: 1 week ago