Crosby Company acquired a machine on January 1, 2009, that cost $2,700 and had a

Question

Crosby Company acquired a machine on January 1, 2009, that cost $2,700 and had an estimated residual value of $200. Complete the following schedule using the three methods of depreciation: A. straight-line, B. units-of-production, C. 150% declining-balance.

Find Depreciation Expense for 2010; Accumulate Depreciation 12/31/2010
A.Sraight line useful life=5years

B.Units of Pproduction useful life: 10,000 units
1,000 units (2009 Crosby Company acquired a machine on January 1, 2009, that cost $2,700 and had an estimated residual value of $200. Complete the following schedule using the three methods of depreciation: A. straight-line, B. units-of-production, C. 150% declining-balance.

Find Depreciation Expense for 2010; Accumulate Depreciation 12/31/2010
A.Sraight line useful life=5years

B.Units of Pproduction useful life: 10,000 units
1,000 units (2009

Explanation / Answer

A.Sraight line useful life=5years Total cost = 2700 residual value = 200 depreciable value = 2500 Depreiciation per year = 2500 / 5 = $500 B.Units of Pproduction useful life: 10,000 units 1,000 units (2009’s actual) 1,200 units (2010’s actual) Deprication per unit = 2500 / 10000 = 0.40 Depreciation for 2009 = 1000 x 0.40 = 400 Depreciation for 2010 = 1200 x 0.40 = 480 C.Declining Balance useful life 5years Depricition for 2009 = 2700 x 15% = 405 Depreciation for 2010 = 2295 x 15% = 344

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.