Question
Torge Company bought a machine for $78,000 cash. The estimated useful life was five years and the estimated residual value was $9,000. Assume that the
Torge Company bought a machine for $78,000 cash. The estimated useful life was five years and the estimated residual value was $9,000. Assume that the estimated useful life in productive units is 210,000. Units actually produced were 56,000 in year 1 and 63,000 in year 2. |
Required: |
1. | Determine the appropriate amounts to complete the following schedule. (Do not round intermediate calculations.) |
2-a. | Which method would result in the lowest net income for year 1? | ||||||
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2-b. | Which method would result in the lowest net income for year 2? | ||||||
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3. | Which method would result in the lowest fixed asset turnover ratio for year 1? | ||||||
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