Question
On June 1, 2014, Flippy-Floppy purchased a manufacturing machine for $864,000. The machine has an eight-year estimated life and a $44,000 estimated salvage value. Flippy-Floppy
On June 1, 2014, Flippy-Floppy purchased a manufacturing machine for $864,000. The machine has an eight-year estimated life and a $44,000 estimated salvage value. Flippy-Floppy expects to manufacture 1,800,000 units over the life of the machine. Required: Complete the required depreciation schedules on the manufacturing machine for each method listed. The additional production information is as follows: Year Production 2014 110,000 2015 300,000 2016 350,000 2017 350,000 2018 500,000 2019 450,000 2020 375,000 2021 400,000 Schedules for:
a. Straight-line.
| Year | Depreciation Expense | Accumulated Depreciation | End of Year Book Value |
| 2014 |
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| 2015 |
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| 2016 |
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b. Double-declining balance.
| Year | Depreciation Expense | Accumulated Depreciation | End of Year Book Value |
| 2014 |
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| 2015 |
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| 2016 |
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| 2017 |
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| 2018 |
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| 2019 |
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| 2020 |
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| 2021 |
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| 2022 |
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c.Sum -of-the-years' digits.
| Year | Depreciation Expense | Accumulated Depreciation | End of Year Book Value |
| 2014 |
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| 2015 |
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| 2016 |
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| 2017 |
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| 2018 |
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| 2019 |
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| 2020 |
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| 2021 |
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| 2022 |
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d. Units of production.
| Year | Depreciation Expense | Accumulated Depreciation | End of Year Book Value |
| 2014 |
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| 2015 |
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| 2016 |
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| 2017 |
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| 2018 |
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| 2019 |
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| 2020 |
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| 2021 |
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Strategic Accounting For Management
Authors: Bob Ryan
1st Edition
1861524625, 9781861524621
