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The following data relate to the Machinery account of Metlock, Inc. at December 31, 2020. Machinery A B C D Original cost $50,600 $56,100 $88,000
The following data relate to the Machinery account of Metlock, Inc. at December 31, 2020.
Machinery | ||||||||
A | B | C | D | |||||
Original cost | $50,600 | $56,100 | $88,000 | $88,000 | ||||
Year purchased | 2015 | 2016 | 2017 | 2019 | ||||
Useful life | 10 years | 15,000 hours | 15 years | 10 years | ||||
Salvage value | $3,410 | $3,300 | $5,500 | $5,500 | ||||
Depreciation method | Sum-of-the-years'-digits | Activity | Straight-line | Double-declining balance | ||||
Accum. depr through 2020* | $34,320 | $38,720 | $16,500 | $17,600 |
*In the year an asset is purchased, Metlock, Inc. does not record any depreciation expense on the asset. In the year an asset is retired or traded in, Metlock, Inc. takes a full years depreciation on the asset. The following transactions occurred during 2021.
(a) | On May 5, Machine A was sold for $14,300 cash. The companys bookkeeper recorded this retirement in the following manner in the cash receipts journal. |
Cash | 14,300 | ||
Machinery (Machine A) | 14,300 |
(b) | On December 31, it was determined that Machine B had been used 2,350 hours during 2021. | ||
(c) | On December 31, before computing depreciation expense on Machine C, the management of Metlock, Inc. decided the useful life remaining from January 1, 2021, was 10 years. | ||
(d) | On December 31, it was discovered that a machine purchased in 2020 had been expensed completely in that year. This machine cost $30,800 and has a useful life of 10 years and no salvage value. Management has decided to use the double-declining-balance method for this machine, which can be referred to as Machine E. |
I ONLY NEED PART A AND B PLEASE. :)
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