edugen wieyplus.com Kleso, Intermediate Accounting, 16e INTERMEDIATE ACCOUNTING
ID: 2556024 • Letter: E
Question
edugen wieyplus.com Kleso, Intermediate Accounting, 16e INTERMEDIATE ACCOUNTING (AC 2301/2401 Gradebeok ORION Downloadable eTextbook Solish Company purchased machinery for $170,100 on January 1, 2017. It is estimated that the machinery will have a useful ife of 20 years, salvage value of $24,700, production of 76,400 units, and working hours of 40,300. During 2017, the company uses the machinery for 13,702 hours, and the machinery produces 16 units. Compute depreciation under the straight-line, units-of output, working hours, sum-of che years digits, and deuble-decining-balance methods (Round intermediate calculations to 5 decimal places, e.g. 1.56487 and final answers to O decimal places51 Straight-ne Working hours Click?you would like to Show Work for this question: Densorwaa by accrssing this Question Assistance, you will learn while you eam points based on the Pint Potential Polcy set by your instructor home end 5 0Explanation / Answer
Cost of machinery: 170100 Salvavge value: 14700 Depreciable amount: (Cost -salvage): 155400 Depreciation under SLM: Annual Depreciation: Depreciable amout/ Life: 155400/20 = 7770 Depreciation undr Unit of output: Depreciation per unit of output : (155400/76400): 2.034 per unit Depreciation for the year: 14516 units @2.034: $29,526 Depreciation under Working hours: Depreciation per hour (155400/40300): $ 3.856 per hour Depreciation for the year: 13702 hours @3.856: $ 52835 Depreciation under Sum of years digit: Sum of years: 210 Depreciation for current year: (155400/210*20): $14,800 Depreciation Under DDM: SLM rate(100/20): 5% Rate under DDM (5*2) = 10% Depreciation under DDM (170100*10%): $ 17010 Depreciation SLM 7770 Depreciation UNITS 29526 Depreciation HOURS 52835 Depreciation SUM YEARS 14800 Depreciation DDM 17010
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.