Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

E9-6 Computing Depreciation under Alternative Methods [LO 9-3] Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $25,000.

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
E9-6 Computing Depreciation under Alternative Methods [LO 9-3] Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $25,000. The estimated useful life was five years and the residual value was $3,000. Assume that the estimated productive life of the machine is 10,000 units. Expected annual production was year 1, 2,000 units; year 2, 3,000 units; year 3, 2,000 units; year 4, 2,000 units; and year 5.1,000 units. Required: 1. Complete a depreciation schedule for each of the alternative methods. a. Straight-line. b. Units-of-production. c. Double-declining balance. 2. Which method will result in the highest net income in year 2? Does this higher net income mean the machine was used more efficiently under this depreciation method? Complete this question by entering your answers in the tabs below. Req 1A Reg 18 Reg 10 Req 2A Reg 28 Complete a depreciation schedule for Straight-line method. (Do not round intermediate calculations.) Income Statement Balance Sheet Depreciation Cost Accumulated Expense Depreciation Book Value At acquisition Year 2 3 4 5 Reg 10 > E9-6 Computing Depreciation under Alternative Methods [LO 9-3) Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $25,000. The estimated useful life was five years and the residual value was $3,000. Assume that the estimated productive life of the machine is 10,000 units. Expected annual production was year 1, 2,000 units; year 2, 3,000 units; year 3, 2,000 units; year 4, 2,000 units; and year 5.1000 units. Required: 1. Complete a depreciation schedule for each of the alternative methods. a. Straight-line. b. Units-of-production. c. Double-declining-balance. 2. Which method will result in the highest net income in year 2? Does this higher net income mean the machine was used more efficiently under this depreciation method? Complete this question by entering your answers in the tabs below. Reg 1A Req 18 Req1c Req 2A Reg 28 Complete a depreciation schedule for Units-of-production method. (Do not round intermediate calculations.) Income Balance Sheet Statement Year Depreciation Cost Accumulated Expense Depreciation Book Value At acquisition 1 2 3 4 5 E9-6 Computing Depreciation under Alternative Methods [LO 9-3) Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $25,000. The estimated useful life was five years and the residual value was $3,000. Assume that the estimated productive life of the machine is 10,000 units. Expected annual production was year 1, 2,000 units, year 2, 3,000 units; year 3, 2,000 units: year 4. 2,000 units; and year 5, 1.000 units. Required: 1. Complete a depreciation schedule for each of the alternative methods. a. Straight-line. b. Units-of-production. c. Double-declining balance. 2. Which method will result in the highest net income in year 2? Does this higher net income mean the machine was used more efficiently under this depreciation method? Complete this question by entering your answers in the tabs below. Req1A Req 18 Reg 10 Red 2A Reg 28 Complete a depreciation schedule for Double-declining-balance method. (Do not round intermediate calculations, Round final answers to the nearest whole dollars.) Income Statement Balance Sheet Year Depreciation Accumulated Expense Cost Depreciation Book Value At acquisition 1 2 3 4 5 E9-6 Computing Depreciation under Alternative Methods (LO 9-3) Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $25,000. The estimated useful life was five years and the residual value was $3,000. Assume that the estimated productive life of the machine is 10,000 units. Expected annual production was year 1, 2,000 units; year 2, 3,000 units; year 3, 2,000 units: year 4, 2,000 units; and year 5, 1.000 units. Required: 1. Complete a depreciation schedule for each of the alternative methods. a. Straight-line. b. Units-of-production. c. Double-declining-balance. 2. Which method will result in the highest net income in year 2? Does this higher net income mean the machine was used more efficiently under this depreciation method? Complete this question by entering your answers in the tabs below. Reg 1A Req 18 Reg 1C Req 2A Req 28 Which method will result in the highest net income in year 2? Units-of-production O Double-declining-balance Straight-line E9-6 Computing Depreciation under Alternative Methods (LO 9-3] Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $25,000. The estimated useful life was five years and the residual value was $3,000. Assume that the estimated productive life of the machine is 10,000 units. Expected annual production was year 1, 2,000 units: year 2, 3,000 units: year 3, 2,000 units; year 4, 2,000 units; and year 5, 1,000 units. Required: 1. Complete a depreciation schedule for each of the alternative methods. a. Straight-line. b. Units-of-production c. Double-declining-balance. 2. Which method will result in the highest net income in year 2? Does this higher net income mean the machine was used more efficiently under this depreciation method? Complete this question by entering your answers in the tabs below. Reg 1A Reg 18 Reg 10 Red 2A Reg 28 Does this higher net Income mean the machine was used more efficiently under this depreciation method? Yes No

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

Managerial Accounting

Authors: James Jiambalvo

4th edition

9780470546888, 9780470333341, 470546883, 470333340, 978-0470578797

More Books

Students also viewed these Accounting questions

Question

What have you done so far?

Answered: 1 week ago

Question

When it is good, what is different?

Answered: 1 week ago

Question

What is happening now?

Answered: 1 week ago