Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On October 1, 2018, the Allegheny Corporation purchased machinery for $257,000. The estimated service life of the machinery is 10 years and the estimated residual

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribedimage text in transcribed

On October 1, 2018, the Allegheny Corporation purchased machinery for $257,000. The estimated service life of the machinery is 10 years and the estimated residual value is $4,000. The machine is expected to produce 460,000 units during its life. Required: Calculate depreciation for 2018 and 2019 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service. 1. Straight line. 2. Sum-of-the-years'-digits. 3. Double-declining balance. 4. One hundred fifty percent declining balance. 5. Units of production (units produced in 2018, 23,000; units produced in 2019, 38,000). Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Calculate depreciation for 2018 and 2019 using straight line method. Partial-year depreciation is calculated based on the number of months the asset is in service. Straight-Line Depreciation 1 Choose Denominator: Choose Numerator: Annual Depreciation = Annual Depreciation Year Annual Depreciation x Fraction of Year = Depreciation Expense 2018 2019 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Calculate depreciation for 2018 and 2019 using sum-of-the-years' digits. Partial-year depreciation is calculated based on the number of months the asset is in service. Fraction of Year Depreciation Expense Sum-of-the-years' digits depreciation Depreciable |x Rate per Year X Base 10/1/2018 through 12/31/2018 Total depreciation expense - 2018 1/1/2019 through 9/30/2019 10/1/2019 through 12/31/2019 Total depreciation expense - 2019 Complete this question by entering your answers in the tabs below. Required 1 Required 2 | Required 3 Required 4 Required 5 Calculate depreciation for 2018 and 2019 using double-declining balance. Partial-year depreciation is calculated based on the number of months the asset is in service. End of Period Depreciation for the Period Beginning of Depreciation Fraction Depreciation Annual Period Period Book Rate of Year Expense Value 2018 2019 Accumulated Depreciation Book Value $ 0 $ 0 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 I Required 4 Required 5 Calculate depreciation for 2018 and 2019 using one hundred fifty percent declining balance. Partial-year depreciation is calculated based on the number of months the asset is in service. (Do not round your intermediate calculations and round your final answers to nearest whole number.) End of Period Depreciation for the Period Beginning of Period Book Depreciation Fraction Depreciation Rate of Year Expense Value Annual Period Accumulated Depreciation Book Value 2018 2019 0 $ 0 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Calculate depreciation for 2018 and 2019 using Units of production (units produced in 2018, 23,000; units produced in 2019, 38,000). Partial-year depreciation is calculated based on the number of months the asset is in service. (Round "Depreciation per unit rate" answers to 2 decimal places.) Show less Select formula for Units of Production Depreciation: Calculate 2018 depreciation expense: Depreciation per unit rate Units produced in 2018 Depreciation in 2018 Calculate 2019 depreciation expense

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions