Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On January 1, 2014, Courier Inc. purchased new equipment that had a total cost (including shipping and installation) of $83,000. The equipment is expected to

On January 1, 2014, Courier Inc. purchased new equipment that had a total cost (including shipping and installation) of $83,000. The equipment is expected to have a useful life of four years or produce a total of 123,000 units. At the end of its life, the equipment is expected to have a residual value of $4,300. The equipment is expected to produce 22,140 units in 2014; 31,980 units in 2015; 31,980 units in 2016; and 36,900 units in 2017. Courier Inc.'s fiscal year ends on December 31.

In the table below, fill in the missing depreciation expense and accumulated depreciation amounts using the straight-line, double-declining-balance, and units-of-production methods. Do not round your intermediate calculation. When required, round your answers to the nearest dollar.

Cost $83,000 Depreciation Expense Accumulated Depreciation
Year Straight-line Method Double- Declining- Balance Method Unit-of- Production Method Straight-line Method Double- Declining- Balance Method Unit-of- Production Method
2014 $. ???? $41,500 $14,166 $19,675 $41,500 $14,166
2015 $19,675 $ ???? $20,462 $ ???? $62,250 $34,628
2016 $19,675 $10,375 $ ???? $59,025 $ ???? $55,090
2017 $19,675 $6,075 $23,610 $78,700 $78,700 $. ????

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

Management And Cost Accounting Students Manual

Authors: Colin Drury

6th Edition

184480030X, 978-1844800308

More Books

Students also viewed these Accounting questions