Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

At the beginning of the year, Palermo Brothers, Incorporated, purchased a new plastic water bottle-making machine at a cost of $44,000. The estimated residual value

At the beginning of the year, Palermo Brothers, Incorporated, purchased a new plastic water bottle-making machine at a cost of $44,000. The estimated residual value was $5,000. Assume that the estimated useful life was four years and the estimated productive life of the machine was 390,000 units. Actual annual production was as follows:

Year Units
1 117,000
2 85,800
3 107,250
4 79,950

Required:

1. Complete a separate depreciation schedule for each of the alternative methods.

  1. Straight-line.
  2. Units-of-production.
  3. Double-declining-balance.

Complete this question by entering your answers in the tabs below.

  • Req 1A
  • Req 1B
  • Req 1C

Complete a depreciation schedule using the straight-line method.

Year Depreciation Expense Accumulated Depreciation Net Book Value
At acquisition
1
2
3
4

Complete this question by entering your answers in the tabs below.

  • Req 1A
  • Req 1B
  • Req 1C

Complete a depreciation schedule using the units-of-production method.

Note: Use two decimal places for the per unit output factor.

Year Depreciation Expense Accumulated Depreciation Net Book Value
At acquisition
1
2
3
4

Complete this question by entering your answers in the tabs below.

  • Req 1A
  • Req 1B
  • Req 1C

Complete a depreciation schedule using the double-declining-balance method.

Year Depreciation Expense Accumulated Depreciation Net Book Value
At acquisition
1
2
3
4

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

CPA Comprehensive Exam Review Auditing And Attestation

Authors: Nathan M. Bisk

43rd Edition

088128095X, 978-0881280951

More Books

Students also viewed these Accounting questions