value: 12.00 points At the beginning of the year, Young Company bought three use

Question

value: 12.00 points At the beginning of the year, Young Company bought three used machines from Vince, Inc. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts Machine A Machine B Machine C Amount paid for asset Installation costs Renovation costs prior to use Repairs after production began $8,550 $27,500 $11,200 550 1,450 800 250 3,400 590 650 1,650 540 By the end of the first year, each machine had been operating 10,000 hours Required 1. Compute the cost of each machine Cost of Machine Machine A MachineB Machine C

Explanation / Answer

1. Compute cost of machine :

Journal entry :

Machine a dep = (12200-500)/5 = 2340

Machine B dep = (29800-200)/50000*10000 = 5920

Machine C dep :

Straight line rate = 100/6 = 16.67%

Double decline rate = 16.67*2 = 33.33%

first year dep = 13200*33.33% = 4400

Cost of machine Machine A 12200 Machine B 29800 Machine C 13200

Related Questions

Navigate

• Browse (All)
• Browse V
• Subjects

---

---

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