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Show work Sandhill Company purchased equipment on account on September 3, 2019, at an invoice price of $189,000. On September 4, 2019, it paid $4,600
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Sandhill Company purchased equipment on account on September 3, 2019, at an invoice price of $189,000. On September 4, 2019, it paid $4,600 for delivery of the equipment. A one-year, 51,940 insurance policy on the equipment was purchased on September 6, 2019. On September 20, 2019, Sandhill paid $3,400 for installation and testing of the equipment. The equipment was ready for use on October 1, 2019. Sandhill estimates that the equipment's useful life will be four years, with a residual value of $10,500. It also estimates that, in terms of activity, the equipment's useful life will be 93,250 units. Sandhill has a September 30 fiscal year end. Assume that actual usage is as follows: # of Units Year Ended September 30 15,490 2020 23,790 2021 20,090 2022 34,780 2023 Determine the cost of the equipment. Cost of equipments Prepare depreciation schedules for the life of the asset under the following depreciation methods: 1. straight-line 2. double diminishing-balance 3. units-of-production (Round depreciable amount per unit to 2 decimal places, e.g. 5.27 and the final answers to 0 decimal places, e.g. 5,276.) 1. STRAIGHT-LINE DEPRECIATION End of Year Year Depreciable Amount Depr. Rate Depr. Expense Accum. Depr. Carrying Amount 2020 % 2021 2022 % 2023 % 2. DOUBLE DIMINISHING-BALANCE DEPRECIATION End of Year Year Carrying Amount Beginning of Year Depr. Rate Depr. Expense Accum. Depr. Carrying Amount 2020 % $ $ 2021 % 2022 % 2023 % 3. UNITS-OF-PRODUCTION End of Year Units of Production Depr. Amt/Unit Depr. X Accum. Depr. Year Expense Carrying Amount 2020 2021 2022 2023 which method would result in the highest profit for the year ended September 30, 2021? Over the life of the asset? method would result in the highest profit for the year ended September 30, 2021. Over the life of the asset, V result in the same total depreciation expenseStep by Step Solution
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