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The years are ok the left hand side as show in the last photo Current Attempt in Progress Blossom Limited purchased a machine on account
The years are ok the left hand side as show in the last photo
Current Attempt in Progress Blossom Limited purchased a machine on account on April 1, 2021, at an invoice price of $365,470. On April 2, it paid $2,170 for delivery of the machine. A one-year. $4,120 insurance policy on the machine was purchased on April 5. on April 19, Blossom paid $7,580 for installation and testing of the machine. The machine was ready for use on April 30. Blossom estimates the machine's useful life will be five years or 6,118 units with a residual value of $87,910. Assume the machine produces the following numbers of units each year: 893 units in 2021: 1,448 units in 2022: 1,426 units in 2023: 1,222 units in 2024; and 1,129 units in 2025. Blossom has a December 31 year end. (a) Your answer is correct. Determine the cost of the machine. Cost of the machines 375220 e Textbook and Media Attempts: 1 of 3 used (b) (1) Straight-line method Depreciable Amount Depreciation Expense Accumulated Depreciation Carrying Amount 287310 43097 $ 43097 $ 332123 287310 57462 100559 274661 287310 57462 158021 217199 267310 57462 215483 159737 287310 57462 272945 102275 287310 14365 287310 87910 (2) Double-diminishing-balance method Opening Carrying Amount Depreciation Expense Accumulated Depreciation Carrying Amount 375220 $ 112566 $ 112566 $ 262654 262654 105062 217628 157592 157592 63037 280665 94555 94555 6645 287310 87910 87910 287310 87910 87910 287310 87910 (3) Units of production method 87910 0 287310 87910 (3) Units-of-production method Units-of-production Depreciation Expense Accumulated Depreciation Carrying Amount 893 41937 41937 $ 333283 1448 68000 109937 265283 1426 66967 176904 198316 1222 57387 234291 140929 1129 53019 287310 87910 Which method causes net income to be lower in the early years of the asset's life? Double-Diminishing-Balance Method e Textbook and Media Save for Later Attempts: 2 of 3 used Submit Answer Question 21 of 25 2023 287310 2024 287310 2025 287310 2026 287310 (2) Double-diminishing-balance method Year Opening Carrying Amount 2021 $ 375220 2022 262654 2023 157592 2024 94555 2025 87910 2026 87910 (3) Units-of-production method Year Units-of-production 2021 893 $ 2022 1448 2023 1426 Step by Step Solution
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