Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume that the company, after recording depreciation using the straight-line method, for the first six months of 2026. determined on July 1,2026, that the robots

image text in transcribed

image text in transcribed

image text in transcribed

Assume that the company, after recording depreciation using the straight-line method, for the first six months of 2026. determined on July 1,2026, that the robots could be operated for two more years than originally estimated. Because of this, the residual value at the end of this revised useful life would now be $44,000. Calculate the annual depreciation and total depreciation over the robots' remaining lives. Total depreciation $ Cullumber Limited purchased four articulated robots on account on May 1,2024, at an invoice price of $550, 000. On May 2, it paid $4,000 for delivery of the robots. A one-year, $5,500 insurance policy on the robots was purchased on May 3. On May 30, Cullumber paid $10,000 for assembly, installation and testing of each robot on a production line. The robots started operating or were ready for use on July 1. Cullumber estimates the useful life of the robots will be four years or 10,100 units with a residual value of $100,000. Assume the robots collectively produce the following numbers of units each year: 1,500 units in 2024;2,800 units in 2025; 2,600 unl $ in 2026 ; 2,200 units in 2027; and 1,000 units in 2028. Cullumber has a December 31 year end. Assume that the company, after recording depreciation using the straight-line method, for the first six months of 2026 , determined on July 1,2026, that the robots could be operated for two more years than originally estimated. Because of this, the residual value at the end of this revised useful life would now be $44,000. Calculate the annual depreciation and total depreciation over the robots' remaining lives

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

Financial Accounting

Authors: Robert Libby, Patricia Libby, Daniel Short

5th Edition

0073208140, 978-0073208145

More Books

Students also viewed these Accounting questions