Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Banko Inc. manufactures sporting goods. The following information applies to a machine purchased on January 1, Year 1 Purchase price Delivery cost Installation charge Estimated

image text in transcribed
image text in transcribed
Banko Inc. manufactures sporting goods. The following information applies to a machine purchased on January 1, Year 1 Purchase price Delivery cost Installation charge Estimated life Estimated units Salvage estimate $ 85,300 $ 5,000 $ 2.000 5 years 148.000 $4,000 During Year 1, the machine produced 44.000 units, and during Year 2 it produced 46,000 units Required o. Determine the amount of depreciation expense for Year 1 and Year 2 using straight line method. b. Determine the amount of depreciation expense for Year and Year 2 using double-declining balance method. c. Determine the amount of depreciation expense for Year 1 and Year 2 using units of production method d. Determine the amount of depreciation expense for Year 1 and Year 2 using MACRS, assuming that the machine is classified as seven-year property. (Round your answers to the nearest dollar amount.) MACRS table: Year 1 2. 3 4 5 6 7 8 5-Year property,% 20.00 32.00 19.20 11.52 11.52 5.76 7-Year property,% 14.29 24.49 17.49 12.49 8.93 8.92 8.93 4.46 Answer is complete but not entirely correct. Year 1 Year 2 . S 17.760 $ 17,760 b $ 37.120 $ 22.272 Depreciation expense Depreciation expense Depreciation expense Depreciation expense c. $ 26.400 S 27,600 $ 17.400 X $ 27.840 X

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

Working Papers Volume 1 To Accompany Weygandt Financial And Managerial Accounting

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

1st Edition

1118233468, 978-1118233467

More Books

Students also viewed these Accounting questions