Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Problem 10-3A (Part Level Submission) On January 1, 2014, Evers Company purchased the following two machines for use in its production process Machine A: The
Problem 10-3A (Part Level Submission) On January 1, 2014, Evers Company purchased the following two machines for use in its production process Machine A: The cash price of this mechine was $48,400. Relsted expenditures indluded: sales tax $2,000, shipping costs $1 30, insurance Machine B: The recorded oast of this machine was s1 72,800 evers estimates that the useful Sfe of the machie is 4 years , a $9,500 S0, instaliation and testing costs $100, and $160 of ol and lubricants to be used with estimates that the useful ire of the machine is 5 years wth a $5,500 salvage value remaining at the end of that time period. Assume that the straight-line method of depreciation is used 2 Your answer is partially corredt. Try again. Prepare the folowing for Machine A (Round answers to D decimal places, e.g. $2,125. Credit account titles 1. The journal entry to record its purchase on January 1, 2014 manualily) Attempts: 3 ef 3 used Y tb) Catculate the amount uf deprecation expense that Evers should record for machine 11) bves uses the straight-ine method of depreciation eah year of its uselui li fu under the fulluwing assumptiors. (Round depreciation cost per unit to 2 decimal places, a.g. 12.25. Rdund final answers to D decimal places, e.g . $2.125.) (2) Evers uses the decdining-balanice mathod. The rate used is twice the straight-ine ratk uses the units-of-activity method and estimales that the usvefu lie of the mechine is 163,20o ts Actuid usage is fllos: 2014, 58,700 units; 20:5, 44,200 units: 2016, 33,600 unts: 2017, 27,200 units. Straight-ine metthod s nethod s 2-04 PM di 10/7/2018 here to search ^
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