Question
Problem 1 (31.5 points) Hit Company manufactures and sells soccer balls. On 1/1/22, the company purchases a piece of manufacturing equipment for $9,000,000 cash. The
Problem 1 (31.5 points)
Hit Company manufactures and sells soccer balls. On 1/1/22, the company purchases a piece of manufacturing equipment for $9,000,000 cash. The expected residual value is $600,000 and the useful life is 5 years. The company expects to produce 60,000,000 balls with the equipment 16,000,000 balls in 2022, 14,000,000 balls in 2023, 10,000,000 balls in 2024, 13,000,000 balls in 2025, and 7,000,000 balls in 2026. SHOW YOUR WORK! Round per unit to the nearest cent.
Assume that Hit Company uses the Straight-Line method of depreciation.
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| 2022 | 2023 | 2024 | 2025 | 2026 |
| Depreciation Expense for the year |
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| Accumulated Depreciation at year-end |
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| PPE, Net on year-end Balance Sheet |
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Financial And Managerial Accounting Working Papers Volume I
Authors: Belverd E. Needles
7th Edition
061839365X, 978-0618393657
