Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Needing help on Part B On January 1, 2022, Sheffield Company purchased the following two machines for use in its production process. Machine A: The

Needing help on Part B
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
On January 1, 2022, Sheffield Company purchased the following two machines for use in its production process. Machine A: The cash price of this machine was $46,500. Related expenditures also paid in cash included: sales tax $3,700. shipping costs $100, insurance during shipping $50, installation and testing costs $70, and $200 of oil and lubricants to be used with the machinery during its first year of operations. Sheffield estimates that the useful life of the machine is 5 years with a $4,300 salvage value remaining at the end of that time period. Assume that the straight-line method of depreciation is used. Machine B : The recorded cost of this machine was $180,000. Sheffield estimates that the useful life of the machine is 4 years with a $10,000 salvage value remaining at the end of that time period. Calculate the amount of depreciation expense that Sheffield should record for Machine B each year of its useful life under the following assumptions. (Round depreciation cost per unit to 2 decimal places. eg. 12.25. Round final answers to 0 decimal places, eg. 2,125.) (1) Sheffield uses the straight-line method of depreciation. (2) Sheffield uses the declining-balance method. The rate used is twice the straight-line rate. (3) Sheffield uses the units-of-activity method and estimates that the useful life of the machine is 135,880 units. Actual usage is as follows: 2022,50,000 units: 2023,38,500 units; 2024,27,000 units; 2025,20,380 units. (3) Sheffield uses the units-of-activity method and estimates that the useful life of the machine is 135,880 units. Actual usage is as follows: 2022,50,000 units; 2023,38,500 units; 2024,27,000 units; 2025,20,380 units. 3) Sheffield uses the units-of-activity method and estimates that the useful life of the machine is 135,880 units. Actual usage is as follows: 2022,50,000 units: 2023,38,500 units: 2024,27,000 units; 202.5,20,380 units

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

New Principles Of Best Practice In Clinical Audit

Authors: Robin Burgess

2nd Edition

1138443646, 978-1138443648

More Books

Students also viewed these Accounting questions

Question

2. List the advantages of listening well

Answered: 1 week ago