Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Depreciation Methods Winsey Company purchased equipment on January 2, 2019 for $700,000. The equipment has the following characteristics Estimated service de 20 years, 100,000 hours,

image text in transcribed
image text in transcribed
Depreciation Methods Winsey Company purchased equipment on January 2, 2019 for $700,000. The equipment has the following characteristics Estimated service de 20 years, 100,000 hours, 950,000 units of output Estimated residual value $50,000 During 2019 and 2020, the company wed the machine for 4,500 and 5,500 hours, respectively, and produced 40,000 and 60,000 units, respectively Required: Compute deprecation experise for 2019 under each of the following methods Round the depreciation rate per hour to 3 decimal places and depreciation rate per unit to 2 decimal places. If required, round your final answers to the nearest dollar 1. Straight-line method 32,500 2. Activity method based on hours worked 29,250 3. Activity method based on units of output 27,360 x 4. Sum-of-the-years-digits method 61,905 S. Double-dectining balance method 70,000 6. 150%-declining balance method 52,500 5 $ $ 5 Compute depreciation expense for 2020 under each of the following methods Round the depreciation rate per hour to 3 decimal places and depreciation rate per unit to 2 decimal places. If required, round your final answers to the nearest dollar. 1. Straight line method 32,500 Round the depreciation rate per hour to 3 decimal places and depreciation rate per unit to 2 decimal places. If required, round your final answers to the nearest dollar $ 32,500 $ 34,141 X $ 39,324 X 1. Straight-line method 2. Activity method based on hours worked 3. Activity method based on units of output 4. Sum of-the-years-digits method 5. Double-declining-balance method 6. 150%-declining-balance method $ 58,810 $ 50,500 x $45,093.7 X 7. Next Level tr Winsey used a service life of 16 years, 80,000 houts, or 750,000 units of output, what would be the effect on depreciation expense under the straight tine, sum-ofthe-yearsdigits, and declining balance depreciation methods? If required, round your answers to the nearest dollar. 2019 2020 Straight line method 40,625 Activity method based on hours worked $ 76,471 Xs Activity method based on units of output $ $ Sum-of-the-years-digits method 3 87,500 $ Double-declining-balance method 150%-declining balance method $ 65,625 $

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

Sound Investing, Chapter 24 - The Auditors??? Opinion

Authors: Kate Mooney

2nd Edition

0071719466, 9780071719469

More Books

Students also viewed these Accounting questions