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PLEASE SET THE ANSWER UP, LIKE HOW IT SHOWS IN THE PICTURES I UPLOADED. THANK YOU Problem 8-2A Depreciation methods OP1 A machine costing $257.500
PLEASE SET THE ANSWER UP, LIKE HOW IT SHOWS IN THE PICTURES I UPLOADED. THANK YOU
Problem 8-2A Depreciation methods OP1 A machine costing $257.500 with a four-year life and an estimated $20,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 475,000 units of product during its life. It actually produces the following units. 220,000 in Year 1. 124,600 in Year 2, 121.800 in Year 3, and 15,200 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate-this difference was not predicted. Note: The machine cannot be depreciated below its estimated salvage value. Page 340 Required Prepare a table with the following column headings and compute depreciation for each year and total depreciation of all years combined) for the machine under each depreciation method. Year Straight-Line Units-of-Production Double-Declining-Balance Check Your units of production depreciation 54.300,00 doprecision. $12.182 1 Problem 8-2A: 2 General Instructions: 4 All calculations should be rounded to whole numbers except the depreciation rate per unit and the percent depreciation rate for the double-declining balance annual rate. The depreciation rate per unit should be rounded to two decimal places The double declinging balance depreciation annual rate should be rounded to whole percentages Calculations should all be embeded in the individual cells All numbers should be linked 9 All numbers and calculations should be properly formatted 10 in this assignment there is no need for report headings 11 12 1 15 ASSSUMPTIONS: Machine cost $257,500 Estimated useful life in years 4 years Estimated useful life in units of production 475,000 units produced Estimate salvage value $ 20,000 Note: For the units of production method the total number of units produced by the end of year 4 exceeds the original estimate. This difference was not predicted. 13 10 30 21 22 Part 1 Calculate the depreciation rate for the straight line and units of production methods Units of Production 23 Straightline 24 25 20 22 Part 2: Calculate the depreciation rate per year for the double-declining balance method 20 30 31 32 30 Part 3: Complete the following table 31 39 40 41 Depreciation Expense by Year 38 Part 3: Complete the following table 50 41 Depreciation Expense by Year Double- Declining Balance Year Untis of Production Straight-line 1 2 3 4 45 Totals Part 4: Calculate annual straight-line depreciation 50 51 Year Straight-line Depreciation Calculations Beginning Current Year Accumulated Balance Depreciation Depreciation 1 2 Net Book Value 53 4 55 00 Totals Part 4: Calculate units of production Depreciation 99 Straight-line Depreciation Calculations 00 Year Units Produced Depreciation Rate per Unit Beginning Balance Current Year Depreciation Accumulated Depreciation Net Book Value 03 2 3 4 Totals Port di Calculate double decline balance depreciation Straight-line Depreciation Calculations Depreciation Rate per Year Beginning Balance Year Current Year Depreciation Accumulated Depreciation Net Book Value 2 73 4 Totals Step by Step Solution
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