Hello, I need help with the following question(s): Exam 3 xC Chegg Study Guided
ID: 2430396 • Letter: H
Question
Hello, I need help with the following question(s):
Exam 3 xC Chegg Study Guided Sol X ? ? ??Secure l https://newconnect.mheducation.com/flow/connect.html Exam 3 Saved Help Save & Exit Submit MC Qu. 107 A company purchased a weaving machine... A company purchased a weaving machine for $290,320. The machine has a useful life of 8 years and a residual value of $16,000. It is estimated that the machine could produce 762,000 bolts of woven fabric over its useful life. In the first year, 111,000 bolts were produced. In the second year, production increased to 115,000 units. Using the units-of-production method, what is the amount of depreciation expense that should be recorded for the second year? pcinis 014815 Multiple Choice 43.815 $41.400 $81.360 Mc Graw 8-07 PM O Type here to search R ^ 41)) 7/24/2018Explanation / Answer
Answers
Answer 16
A
Cost of machine
$ 290,320.00
B
Residual Value
$ 16,000.00
C=A-B
Depreciable base
$ 274,320.00
D
Expected units to be produced
762,000
E=C/D
Depreciation per unit
$ 0.36
F
Units produced in second year
115000
G = E x F
Depreciation expense for second year
$ 41,400.00
Correct answer
Option #2: $ 41,400
Answer 17
A
Cost of machine
$ 100,000.00
B
Residual Value
$ 15,000.00
C=A-B
Depreciable base
$ 85,000.00
D
Life
5
E=C/D
Annual SLM depreciation
$ 17,000.00
F = E/C
SLM rate
20%
G = F x 2 times
DDB rate will be
40%
H = (A x G) x 3/12
Year 1 Depreciation ( for 3 months)
$ 10,000.00
I = A - H
Book Value on Dec 31 of Year 1
$ 90,000.00
J = I x G
Next 12 month depreciation expense
$ 36,000.00
K = I - J
Asset book Value on Dec 31 of Year 2
$ 54,000.00
Correct answer
Option #1: $ 54,000
Answer 16
A
Cost of machine
$ 290,320.00
B
Residual Value
$ 16,000.00
C=A-B
Depreciable base
$ 274,320.00
D
Expected units to be produced
762,000
E=C/D
Depreciation per unit
$ 0.36
F
Units produced in second year
115000
G = E x F
Depreciation expense for second year
$ 41,400.00
Correct answer
Option #2: $ 41,400
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.