Question
On June 1, 2014, Flippy-Floppy purchased a manufacturing machine for $830,000. Additionally, FOB Shipping Point was $4,000. Flippy-Floppy paid $20,000 to modify the production line
On June 1, 2014, Flippy-Floppy purchased a manufacturing machine for $830,000. Additionally, FOB Shipping Point was $4,000. Flippy-Floppy paid $20,000 to modify the production line to accommodate the new machine. Handy-Dandy charged an installation and testing fee of $10,000. 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. (Do not provide any supporting calculations.)
The additional production information is as follows:
Year | Production | Year | Production |
2014 | 110,000 | 2018 | 500,000 |
2015 | 300,000 | 2019 | 450,000 |
2016 | 350,000 | 2020 | 375,000 |
2017 | 350,000 | 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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