Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On January 1, 2020, Bramble Company purchased the following two machines for use in its production process. Machine A: The cash price of this machine

image text in transcribed
image text in transcribed
On January 1, 2020, Bramble Company purchased the following two machines for use in its production process. Machine A: The cash price of this machine was $ 37.500. Related expenditures included: sales tax $ 3.350, shipping costs $ 150. insurance during shipping $ 60. installation and testing costs $ 50, and $ 150 of oil and lubricants to be used with the machinery during its first year of operations. Bramble estimates that the useful life of the machine is 5 years with a $4.150 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. Bramble estimates that the useful life of the machine is 4 years with a $9.800 salvage value remaining at the end of that time period. Your answer is connect Calculate the amount of depreciation expense that Bramble should record for Machine Beach 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 decimal places, eg. 2.125.) (1) (2) Bramble uses the straight-line method of depreciation Bramble uses the declining balance method. The rate used is twice the straight-line rate. Bramble uses the units of activity method and estimates that the useful life of the machine is 148,000 units. Actual usage is as follows: 2020, 51,500 units: 2021, 41,000 units: 2022, 30.500 units; 2023, 25,000 units. (3) Depreciation Expense 2020 2021 2022 2023 Straight ine method $ $ Declining balance method $ $ $ Units-of- activity method $ $ $

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

ISE Managerial Accounting Creating Value In A Dynamic Business Environment

Authors: Ronald W. Hilton, David Platt

13th Edition

1265046794, 9781265046798

More Books

Students also viewed these Accounting questions