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On January 1, 2022, Bramble Company purchased the following two machines for use in its production process. Machine A: The cash price of this machine
On January 1, 2022, Bramble Company purchased the following two machines for use in its production process. Machine A: The cash price of this machine was $39,000. Related expenditures also paid in cash included: sales tax $1,800, shipping costs $150, insurance during shipping $70, installation and testing costs $70, and $200 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 $4,350 salvage value remaining at the end of that time period. Assume that the straight-line method of depreciation is used. The recorded cost of this machine was $180,000. Bramble estimates that the useful life of the machine is 4 years with a $16,720 salvage value remaining at the end of that time period. Machine B: Calculate the amount of depreciation expense that Bramble should record for Machine B each year of its useful life under the following assumptions. (Round depreciation cost per unit to 2 decimal places, e.g. 12.25. Round final answers to O decimal places, e.g. 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 157,000 units. Actual usage is as follows: 2022, 58,000 units; 2023, 44,000 units; 2024, 30,000 units; and 2025, 25,000 units. (3) Depreciation Expense 2022 2023 2024 2025 $ 170048 $ 170048 $ 170048 $ Straight- line method Declining balance method Units-of- activity method $ 170050 $ 170050 170050 $ $ $ $
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