Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.) On April 1, Cyclone's Co. purchases a trencher for $284,000. The machine is expected to last five years and have a salvage value of $42.000, Exercise 10-12 Double-declining-balance, partial-year depreciation LO C2 Compute depreciation expense at December 31 for both the first year and second year assuming the company uses the double- declining-balance method. (Enter all amounts as positive values.) End of Period Depreciation for the Period Depreciation Partial Depreciation Rate Year Expense Beginning of Period Book Value Annual Period Accumulated Book Value Depreciation $ 0 $ 0 $ 0 $ 0 Year 1 Year 2 Required information Problem 10-6A Disposal of plant assets LO C1, P1, P2 [The following information applies to the questions displayed below) Onslow Co. purchased a used machine for $288,000 cash on January 2. On January 3, Onslow paid $8,000 to wire electricity to the machine and an additional $1,600 to secure it in place. The machine will be used for six years and have a $34,560 salvage value. Straight-line depreciation is used. On December 31, at the end of its fifth year in operations, it is disposed of. Problem 10-6A Part 3 3. Prepare journal entries to record the machine's disposal under each separate situation: (a) it is sold for $24,500 cash: (b) it is sold for $98,000 cash; and (c) it is destroyed in a fire and the insurance company pays $35,000 cash to settle the loss claim. Answer is not complete. No Date General Journal Debit Credit 1 Dec 31 Cash Accumulated depreciation-Machinery Loss on sale of machinery Machinery 24,500 1,315,200 41,100 X 297,600 lem Solving Saved Help Sa You received partial credit in the previous attempt. Check my work View Required information Use the following information for the Exercises below. (The following information applies to the questions displayed below) Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $84,600. The machine's useful life is estimated at 20 years, or 393,000 units of product, with a $6,000 salvage value. During its second year, the machine produces 33,300 units of product. Exercise 10-6 Double-declining-balance depreciation LO P1 Determine the machine's second-year depreciation using the double-declining balance method. Double-declining balance Depreciation Choose Factors: Choose Factor(%) Beginning book value x Double the straight-line rate $ 78,600 X 9% Annual Depreciation Expense Depreciation expense $ 7,399 First year's depreciation Second year's depreciation Use the following information for the Exercises below. The following information applies to the questions displayed below.) Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $84,600. The machine's useful life is estimated at 20 years, or 393,000 units of product, with a $6,000 salvage value. During its second year, the machine produces 33,300 units of product. Exercise 10-5 Units-of-production depreciation LO P1 Determine the machine's second-year depreciation using the units-of-production method. 1 Choose Numerator: Cost minus salvage $ 78,600 Annual Production (units) 33,300 Answer is not complete. Units-of-production Depreciation Choose Denominator: Annual Depreciation Expense 1 Total units of production Depreciation expense per unit 7 393,000 $ 0.20 Depreciation Expense OC Year 2 Required information Use the following information for the Exercises below. (The following information applies to the questions displayed below.) Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $84.600. The machine's useful life is estimated at 20 years, or 393,000 units of product, with a $6,000 salvage value. During its second year, the machine produces 33,300 units of product. Exercise 10-4 Straight-line depreciation LO P1 Determine the machine's second-year depreciation and year end book value under the straight-line method. Answer is complete but not entirely correct. Straight-Line Depreciation Choose Numerator: 1 Choose Denominator: Annual Depreciation Expense Depreciation expense $ 3,930 Estimated useful life (years) = 20 O / Cost minus salvage S 78,600 Year 2 Depreciation Year end book value (Year 2) $ 3,930 77,940 $
