Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Chinoo Chapaati purchased Roti manufacturing equipment for $160,000 on October 3, 2017. The estimated life of the equipment is 5 years but due to technological

image text in transcribed
image text in transcribed
image text in transcribed
Chinoo Chapaati purchased Roti manufacturing equipment for $160,000 on October 3, 2017. The estimated life of the equipment is 5 years but due to technological advances, Chinoo Chapaati expects to replace the Roti equipment in two and a half years when the residual value is estimated to be $40,000. Chinoo Chapati's' year end is December 31. REQUIRED Complete a schedule for each year of the Roti manufacturing equipment estimated useful life using the : a. Straight line method b. Double declining balance method Round your calculations to the nearest whole dollar C. Which depreciation method (straight line or double declining balance) will give the highest total profit over the assets useful life? Explain your answer. d. Chinoo Chapaati purchased a Roti Delivery Limo for $120,000 on September 21, 2017. Chinoo Chapaati planned to use it for 400,000 kilometers or about six years and then trade it in for $40,000. The actual kilometers driven were: Year Km 2017 41,000 2018 134,800 2019 151,920 2020 78,840 REQUIRED D. (this is question d continued) Complete a schedule similar to that required in Part 1 using the units of production method Question E. On April 21, 2015 Chinoo Chapaati purchased a customized vegetarian samosa cooker machine for $240.000 and it was estimated to have a useful life of 12 years and a residual value of $60,000. During 2017, it was determined that the total useful life of the vegetarian samosa cooker should be revised to 16 years and the residual value decreased to $20,000 REQUIRED e. Provide the journal entry to record depreciation expense on the machine for the year ended December 31, 2017

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

Conducting An Institutional Diversity Audit In Higher Education A Practitioners Guide To Systematic Diversity Transformation

Authors: Edna Chun, Alvin Evans, Benjamin D. Reese

1st Edition

1620368196, 978-1620368190

More Books

Students also viewed these Accounting questions