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mal 1 No Spac... Heading 1 Heading 2 Title Select Styles Editing Voice Sensitivity p Question 4: Property Plant & Equipment (6 Marks) Summer Enterprises
mal 1 No Spac... Heading 1 Heading 2 Title Select Styles Editing Voice Sensitivity p Question 4: Property Plant & Equipment (6 Marks) Summer Enterprises Ltd. purchased a plece of machinery on May 31, 2020 for $80,000. The estimated useful life is 10 years with a residual value of 8,500. The Company has a December 31 fiscal year end. The machinery produced 150,000 units in 2020 and 325,000 units the following year. Do not use decimals (round to whole numbers). Required: a) Prepare the depreciation expense adjusting journal entry for the December 31, 2020 year end using the straight-line method. Date Calculations: Account Debit Credit b) Assume the company now uses the units-of-production method to calculate depreciation expense. Calculate the depreciation expense for the December 31, 2021 year end. Depreciation Expense at December 31, 2021 = Calculations $ c) Assume now that the company uses the double declining balance method to calculate depreciation Calculate the net book value at December 31, 2020 Net book value at December 31, 2020 = Focus $
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