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On January 1, 20X2, The GenKota Winery purchased a new bottling system.Thesystem has an expected life of 5 years.The system cost $325,000.Shipping, installation, and set
On January 1, 20X2, The GenKota Winery purchased a new bottling system.Thesystem has an expected life of 5 years.The system cost $325,000.Shipping, installation, and set up was an additional $35,000.At the end of the useful life, Julie Hayes, chief accountant for GenKota, expects to dispose of the bottling system for $96,000.She further anticipates total output of 660,000 bottles over the useful life.
- Assuming use of the straight-line depreciation method, prepare a schedule showing annual depreciation expense, accumulated depreciation, and related calculations for each year.
- Assuming use of the units-of-output depreciation method, prepare a schedule showing annual depreciation expense, accumulated depreciation, and related calculations for each year.Actual output, in bottles, was 100,000 (20X2), 130,000 (20X3), 150,000 (20X4), 160,000 (20X5), and 120,000 (20X6).
- Assuming use of the double-declining balance depreciation method, prepare a schedule showing annual depreciation expense, accumulated depreciation, and related calculations for each year.
- Assuming use of the straight-line method, prepare revised depreciation calculations if the useful life estimate was revised at the beginning of 20X4, to anticipate a remaining useful life of 4 additional years (in other words, a total life of 6 years).The revised useful life was accompanied by a change in estimated salvage value to $54,400.
What equations are being used in 1-4?
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