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 $30,000. 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, 1,900 units; year 2, 2,900 units; year 3, 1,900 units; year 4, 1,900 units; and year 5, 1,400 units.
mework Chpt 9 i Saved He Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completi 3 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 $30,000. 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, 1,900 units; year 2, 2,900 units; year 3, 1,900 units; year 4, 1,900 units; and year 5, 1,400 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? X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1c Req 2A Req 2B Complete a depreciation schedule for Straight-line method. (Do not round intermediate calculations.) Income Statement Balance Sheet Depreciation Cost Accumulated Book Year Expense Depreciation Value At acquisition $ 30,000 $ 5.400 $ 30.000 $ 5.400 24.600work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate co 3 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? 2.5 points X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1c Req 2A Req 2B Complete a depreciation schedule for Straight-line method. (Do not round intermediate calculations.) Income Statement Balance Sheet Year Depreciation Accumulated Book Expense Cost Depreciation Value At acquisition $ 30,000 1 $ 5,400 $ 30,000 $ 5,400 24,600 2 5,400 30,000 10,800 19,200 3 5,400 30,000 16,200 13,800 4 5,400 30,000 21,600 8,400 5 5,400 30,000 27,000 3,000 Req 1A. . Req 1B > Mc raw Hill3 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? 2.5 points x Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1c Req 2A Req 2B Complete a depreciation schedule for Units-of-production method. (Do not round intermediate calculations.) Income Statement Balance Sheet Depreciation Cost Accumulated Book Year Expense Depreciation Value At $ 30,000 acquisition $ 12,000 x $ 30,000 $ 12,000 X 18,000 X 2 7,200 X 30,000 19,200 X 10,800 X 3 4,320 X 30,000 23,520 X 6,480 X 4 2,592 X 30,000 26, 112 X 3,888 X 5 888 X 30,000 27,000 3,000 Next > Mc 3 of 8 Next > Mc
