Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help me !! Banko Inc, manufactures sporting goods. The following information applies to a machine purchased on January 1, Year 1: Purchase price Delivery

please help me !!
image text in transcribed
Banko Inc, manufactures sporting goods. The following information applies to a machine purchased on January 1, Year 1: Purchase price Delivery cost Installation charge Estimated life Estimated units Salvage estimate $ 75,000 $ 3,000 $ 2,000 5 years 154,000 $ 3,000 During Year 1, the machine produced 50,000 units, and during Year 2 it produced 52,000 units. Required a. Determine the amount of depreciation expense for Year 1 and Year 2 using straight-line method. b. Determine the amount of depreciation expense for Year 1 and Year 2 using double-declining-balance method. c. Determine the amount of depreciation expense for Year 1 and Year 2 using units of production method. d. Determine the amount of depreciation expense for Year 1 and Year 2 using MACRS, assuming that the machine is classified as seven-year property (Round your answers to the nearest dollar amount.) MACRS table: 5-Year 7-Year Year property,% property, 1 20.00 14.29 2 32.00 24.49 3 19.20 17.49 4 11.52 12.49 11.52 B.93 5.76 8.92 8.93 4.46 00NM Year 1 Year 2 Depreciation expense b. Depreciation expense Depreciation expense d. Depreciation expensel

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Financial Accounting an introduction to concepts, methods and uses

Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis

13th Edition

978-0538776080, 324651147, 538776080, 9780324651140, 978-0324789003

More Books

Students also viewed these Accounting questions

Question

2. Clearly identify time constraints.

Answered: 1 week ago