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disregared the first picture A machine costing $214,600 with a four-year life and an estimated $17.000 salvage value is installed in Luther Company's factory on
disregared the first picture
A machine costing $214,600 with a four-year life and an estimated $17.000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 494,000 units of product during its life. It actually produces the following units: 122.400 in Year 1,124,300 in Year 2, 121,300 in Year 3. 136,000 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate-this difference was not predicted. (The machine cannot be depreciated below its estimated salvage value.) Required: Compute depreciation for each year (and total depreciation of all years combined) for the machine under each depreciation method. (Round your per unit depreciation to 2 decimal places. Round your answers to the nearest whole dollar.) Complete this question by entering your answers in the tabs below. Straight Line Units of Production DDB Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Units of production Year Units 122.400 124,300 121,300 136.000 Units of Production Depreciable anciation Units per unit 197,600 $ 0.40 197,600 0.40 197 600 $ 0.40 197 600 $ 0.40 790.400 Depreciation Expense 48.900 49,720 48,520 50.400 197 600 Yoshi Company completed the following transactions and events involving its delivery trucks. Year 1 Jan. 1 Paid $22,015 cash plus $1,635 in sales tax for a new delivery truck estimated to have a five-year life and a $2,300 salvage value. Delivery truck costs are recorded in the Trucks account. Dec. 31 Recorded annual straight-line depreciation on the truck. ded Year 2 Dec. 31 The truck's estimated useful life was changed from five to four years, and the estimated salvage value was increased to $2,700. Recorded annual straight-line depreciation on the truck. Year 3 Dec. 31 Recorded annual straight-line depreciation on the truck. Dec. 31 Sold the truck for $5,600 cash Required: 1-o. Calculate depreciation for Year 2 1-b. Calculate book value and gain (loss) for sale of Truck on December 31 Year 3. 1-c. Prepare journal entries to record these transactions and events Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 1C Calculate depreciation for Year 2. Total cost Less accumulated depreciation (from Year Book value Less revised salvage value Remaining cost to be depreciated 23,650 4,076 19,574 2,700 16,874 Dec. 31 Recorded annual straight-line depreciation on the truck. Dec. 31 Sold the truck for $5,600 cash. Required: 1-a. Calculate depreciation for Year 2 1-b. Calculate book value and gain (loss) for sale of Truck on December 31. Year 3. 1-c. Prepare journal entries to record these transactions and events. Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 1C Calculate depreciation for Year 2. Total cost Less accumulated depreciation (from Year 23,650 4,076 Book value Less revised salvage value Remaining cost to be depreciated Years of life remaining Total depreciation for Year 2 19,574 2,700 16 874 Required 1B > o search Dec. 31 The truck's estimated useful life was changed from five to four years, and the est $2,700. Recorded annual straight-line depreciation on the truck. Year 3 Dec. 31 Recorded annual straight-line depreciation on the truck. Dec. 31 Sold the truck for $5,600 cash. Required: 1-a. Calculate depreciation for Year 2. 1-b. Calculate book value and gain (loss) for sale of Truck on December 31, Year 3. 1-c. Prepare journal entries to record these transactions and events. Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 1C Calculate book value and gain (loss) for sale of Truck on December 31, Year 3. 4,076 x 5,625 5,625 15,326 Depreciation expense (for Year 1) Depreciation expense (for Year 2) Depreciation expense (for Year 3) Accumulated depreciation 12/31/Year 3 Book value of truck at 12/31/Year 3 Total cost Accumulated depreciation Book value 12/31/Year 3 Gain on sale of truck 23,650 15,326 X 8,324 X 2,724 X *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect: no points deducted 5 WOW SIVUUPUNJEJ UW W par jou MUITOS TECOIU IESE OTSUCTIONS Events Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 10 Prepare journal entries to record these transactions and events. General Journal No 1 Date Jan 01, Year 1 Credit Debit 22,015 Trucks Cash 22,015 2 Dec 31, Year 1 Depreciation expense Trucks Accumulated depreciation Trucks 4,076 4,076 3 Dec 31, Year 2 Depreciation expense Trucks Accumulated depreciation-Trucks 5,625 X 5,625 % Dec 31, Year 3 Depreciation expense Trucks Accumulated depreciation-Trucks 5625 5,625 X 5 Dec 31, Year 3 Cash Accumulated depreciation-Trucks Loss on disposal of trucks 5,600 15,326 X 2.724 X 23,650 Step by Step Solution
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