Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QUESTION 20 Use the following information for problems 19-20. Cougar Corp (December 31 fiscal year end) purchased a piece of machinery, which it will use

image text in transcribed

QUESTION 20 Use the following information for problems 19-20. Cougar Corp (December 31" fiscal year end) purchased a piece of machinery, which it will use to produce inventory, on August 19, 2019 for $450,000. The estimated salvage value is$50,000. The estimated useful life is 4-years. The estimated total activity levels for this machinery over its useful life are production of 1,000,000 units of inventory and working hours of 50,000 hours. Actual activity for 2019-2020 is as follows: 2019: 100,000 units of inventory produced; 8,500 working hours 2020:275,000 units of inventory produced: 14,000 working hours If necessary, round your answer to the nearest dollar. Do not use dollar signs or decimals. What is the amount of depreciation expense for this machinery in 2019 assuming Cougar Corp uses activity based depreciation based on working hours

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

More Books

Students also viewed these Accounting questions

Question

3. Is it a topic that your audience will find worthwhile?

Answered: 1 week ago

Question

2. Does the topic meet the criteria specified in the assignment?

Answered: 1 week ago