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To automate one of its production processes, the Milwaukee Corporation bought four flexible manufacturing cells at a price of $550,000 each. When they were delivered,
To automate one of its production processes, the Milwaukee Corporation bought four flexible manufacturing cells at a price of $550,000 each. When they were delivered, Milwaukee paid freight charges of $17,000 and handling fees of $16,000. Site preparation for these cells cost $51,000. Six foremen, each earning $27 an hour, worked five 40-hour weeks to set up and test the manufacturing cells. Special wiring and other materials applicable to the new manufacturing cells cost $3,500. Determine the cost basis (amount to be capitalized) for these cells. The cost basis for these cells is $ (Round to the nearest dollar.) Consider the following data on an asset: Cost of the asset, / $211,000 Useful life, N 5 years Salvage value, S $68,000 Compute the annual depreciation allowances and the resulting book values. (a) Use the straight-line depreciation method. Fill in the table below. (Round to the nearest dollar.) D Bn CA WN - (b) Use the double-declining-balance method. Fill in the table below. (Round to the nearest dollar.) n n Bn
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