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Can you fix the part I am wrong? Swanson & Hiller, Inc., purchased a new machine on September 1 of the current year at a
Can you fix the part I am wrong?
Swanson & Hiller, Inc., purchased a new machine on September 1 of the current year at a cost of $140,000. The machine's estimated useful life at the time of the purchase was five years, and its residual value was $10,000. The company reports on a calendar year basis. Required: a-1. Prepare a complete depreciation schedule, beginning with the current year, using the straight-line method. (Assume that the half-year convention is used). a-2. Prepare a complete depreciation schedule, beginning with the current year, using the 200 percent declining-balance method. (Assume that the half-year convention is used). a-3. Prepare a complete depreciation schedule, beginning with the current year, using the 150 percent declining-balance, switching to straight-line when that maximizes the expense. (Assume that the half-year convention is used). b. Which of the three methods computed in part a is most common for financial reporting purposes? c. Assume that Swanson & Hiller sells the machine on December 31 of the fourth year for $32,000 cash. Compute the resulting gain or loss from this sale under each of the depreciation methods used in part a. Reg A1 Reg A2 Req A3 Req B Reg C Prepare a complete depreciation schedule, beginning with the current year, using the 150 percent declining-balance, switching to straight-line when that maximizes the expense. (Assume that the half-year convention is used). (Round your answers to the nearest dollar amount.) Year 1 Depreciation Expense $ 21,000 35,700 24,990 17,493 19,010 X 11,807 % Accumulated Depreciation $ 21,000 56,700 81,690 99,183 118,193 X 130,000 Book Value $ 119,000 83,300 58,310 40,817 21,807 X 10,000Step by Step Solution
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