Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help solving the yellow parts. I did b1 and b2 but not sure if its correct of its On January 1, 2017, B

I need help solving the yellow parts. I did b1 and b2 but not sure if its correct image text in transcribed
of its On January 1, 2017, B Company purchased two machines for use in its production process. Machine B The recorded cost of this machine was $120,000. Dill estimates that the useful life of the machine is 4 years with a $8,000 salvage value remaining at the end of that fune period. Instructions (b) Calculate the amount of depreciation expense that should be recorded for Machine Beach year useful life under the following assumption (1) Company uses the straight-ine method of depreciation. (2) Company uses the declining-balance method. The rate used is twice the straight line rate (3) Company uses the units-of-activity method and estimates the useful life is 25,000 units. Actual usage: 2017=5,500 units: 2018- 7,000 units; 2019= 8,000 units; 2020-4,500 units. (c) Which method used to calculate depreciation on Machine B reports the lowest amount of depreciation expense in year 1 (2017)? The lowest amount in year 4 (2018)? The lowest total amount over the 4- year penod? Problem 9-3B ... working papers 28,000 per b1 Straight line method, Depreciation Expense annum DDB Rate b2 Year 2017 2018 2019 2020 Book Value at Beginning of Year 120,000 60,000 30,000 15000 50% 50% 50% 50% Annual Deprec Expense 60,000 30,000 15000 7000 Accumulated Depreciation 60,000 90,000 105,000 112,000 b3 Year (c)

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_2

Step: 3

blur-text-image_3

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

Accounting Information System

Authors: James A. Hall

7th Edition

978-1439078570, 1439078572

More Books

Students also viewed these Accounting questions

Question

What factors contribute most to the comprehension of read text?

Answered: 1 week ago