Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Calculate the revised depreciation expense amount for 2024 for each of Company A, Company B and Company C. (Round depreciation per unit to 2 decimal
Calculate the revised depreciation expense amount for 2024 for each of Company A, Company B and Company C. (Round depreciation per unit to 2 decimal places, e.g. 1.25 and final answers to 0 decimal places, e.g. 125.) Company A, Company B and Company C had purchased the same piece of machinery 2 years ago at the beginning of 2022 . The machinery was originally purchased for $96,000 and had a residual value of $4,000. At the time of purchase the estimated useful life of the asset was 4 years or the equivalent useful life in units-of-production equal to 23,000 units. At the beginning of 2024 , it was determined that the total useful life of the asset was 6 years rather than 4 years originally expected or the equivalent total units-ofproduction of 31,200 units. In addition, to the extended useful life of the machinery, the revised residual value is estimated at $2,000. The actual number of units produced in the first two years was 5,600 units per year. The actual production for 2024 was 7,300 units. Each of the companies uses a different method of depreciation with Company A using the straight-line method of depreciation, Company B uses the units-of-production method with a per unit depreciation charge rounded to the nearest cent and Company C uses the double diminishing-balance method
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started