Question
Problem 1 (27 points) Pan Corporation is a company that manufactures and sells baking forms. On 1/1/20, the company purchases a piece of manufacturing equipment
Problem 1 (27 points)
Pan Corporation is a company that manufactures and sells baking forms. On 1/1/20, the company purchases a piece of manufacturing equipment for $2,500,000 cash. The expected residual value is $260,000 and the useful life is 5 years. The company expects to produce 8,000,000 forms with the equipment 2,500,000 forms in 2020; 2,000,000 forms in 2021; 1,500,000 forms in 2022; 800,000 forms in 2023, and 1,200,000 forms in 2024.
Assume that Pan Corporation uses the Straight-Line method of depreciation.
|
| 2020 | 2021 | 2022 | 2023 | 2024 |
| Depreciation Expense for the year |
|
|
|
|
|
| Accumulated Depreciation at year-end |
|
|
|
|
|
| PPE, Net on year-end Balance Sheet |
|
|
|
|
|
Assume that Pan Corporation uses the Units-of-Activity method of depreciation.
|
| 2020 | 2021 | 2022 | 2023 | 2024 |
| Depreciation Expense for the year |
|
|
|
|
|
| Accumulated Depreciation at year-end |
|
|
|
|
|
| PPE, Net on year-end Balance Sheet |
|
|
|
|
|
Assume that Pan Corporation uses the Double-Declining-Balance method of depreciation.
|
| 2020 | 2021 | 2022 | 2023 | 2024 |
| Depreciation Expense for the year |
|
|
|
|
|
| Accumulated Depreciation at year-end |
|
|
|
|
|
| PPE, Net on year-end Balance Sheet |
|
|
|
|
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Auditors Guide To Information Systems Auditing
Authors: Richard E. Cascarino
1st Edition
0470009896, 978-0470009895
