Question

Chapter 11 Operational Assets: Utilization and Impairment Jackson Company purchased a new piece of equipment on...

Chapter 11 Operational Assets: Utilization and Impairment

Jackson Company purchased a new piece of equipment on July 1, 2018 at a cost of $36,000. The equipment has an estimated useful life of 10 years and an estimated residual value of $6,000. During its ten-year useful life, the equipment is expected to produce 500,000 units. The equipment actually produced the following number of units: 2018, 25,000; 2019, 84,000; and 2020, 90,000.

(a) Calculate depreciation expense for 2018, 2019, and 2020 assuming Jackson uses straight-line depreciation.

(b) Calculate depreciation expense for 2018, 2019, and 2020 assuming Jackson uses units-of-production depreciation.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
On January 1, 2019, ABC Company purchased a new piece of equipment. The equipment was assigned...
On January 1, 2019, ABC Company purchased a new piece of equipment. The equipment was assigned a $7,000 residual value and is expected to produce a total of 60,000 units over its life. The depreciation expense reported on the equipment for 2019 was $10,734. During 2020, the equipment was used to produce 9,000 units. At December 31, 2020, the book value of the equipment was $57,466. ABC Company is using the units-of-production depreciation method to depreciate the equipment. Calculate the...
Hanson Company purchased a piece of equipment for $1,730,000 and placed it in operation on January...
Hanson Company purchased a piece of equipment for $1,730,000 and placed it in operation on January 1, 2016. Depreciation was recorded for 2016, 2017, and 2018 using the straight-line method, a 10-year life, and an expected residual value of $63,000. Based on the Hanson Company’s usage of the equipment through 2018, they believe that the useful life of the equipment will be longer than they had originally estimated. They have revised the estimated life of the equipment to be a...
A piece of equipment was acquired on January 1, 2018, at a cost of $36,000, with...
A piece of equipment was acquired on January 1, 2018, at a cost of $36,000, with an estimated residual value of $5,000 and an estimated useful life of six years. The company uses the double-declining-balance method. What is its book value at December 31, 2019?
On January 2, 2018, the Jackson Company purchased equipment to be used in its manufacturing process....
On January 2, 2018, the Jackson Company purchased equipment to be used in its manufacturing process. The equipment has an estimated life of eight years and an estimated residual value of $45,250. The expenditures made to acquire the asset were as follows: Purchase price $ 203,500 Freight charges 5,600 Installation charges 8,500 Jackson’s policy is to use the double-declining-balance (DDB) method of depreciation in the early years of the equipment’s life and then switch to straight line halfway through the...
Q4) JKL Company purchased manufacturing equipment on January 1, 2018 for $13,000. Additionally, costs of $1,000...
Q4) JKL Company purchased manufacturing equipment on January 1, 2018 for $13,000. Additionally, costs of $1,000 for transportation of the equipment to JKL’s factory, $2,000 for installation of the equipment and 1,500 for advertising to hire operators for the equipment, were incurred by JKL. A useful life of 4 years and a residual value of $1,200 are estimated for the truck Calculate depreciation expense and book value for 2018, 2019, 2020 and 2021, assuming the double declining-balance method of depreciation...
Trainor Corporation purchased equipment at a cost of $500,000. The equipment has an estimated residual value...
Trainor Corporation purchased equipment at a cost of $500,000. The equipment has an estimated residual value of $50,000 and an estimated life of 5 years, or 10,000 hours of operation. The equipment was purchased on January 1, 2020 and was used 2,500 hours in 2020 and 2,100 hours in 2021. On January 1, 2022, the company decided to sell the equipment for $315,000. Trainor Corporation uses the units-of- production method to account for the depreciation on the equipment. Based on...
Case E. Matson Company purchased the following on January 1, 2016:      • Office equipment at...
Case E. Matson Company purchased the following on January 1, 2016:      • Office equipment at a cost of $42,000 with an estimated useful life to the company of three years and a residual value of $12,600. The company uses the double-declining-balance method of depreciation for the equipment. • Factory equipment at an invoice price of $806,800 plus shipping costs of $22,000. The equipment has an estimated useful life of 112,000 hours and no residual value. The company uses the...
At the beginning of 2017, your company buys a $34,400 piece of equipment that it expects...
At the beginning of 2017, your company buys a $34,400 piece of equipment that it expects to use for 4 years. The equipment has an estimated residual value of 4,000. The company expects to produce a total of 200,000 units. Actual production is as follows: 41,000 units in 2017, 53,000 units in 2018, 45,000 units in 2019, and 61,000 units in 2020. Required: Determine the depreciable cost. Calculate the depreciation expense per year under the straight-line method. Use the straight-line...
Shasta Exploring purchases a piece of equipment on January 1, 2012, for $50,000 and the equipment...
Shasta Exploring purchases a piece of equipment on January 1, 2012, for $50,000 and the equipment has an expected useful life of five years. Its residual value is estimated to be $4,000. Assuming Shasta uses the double-declining balance depreciation method, what is the depreciation expense for the equipment for 2013? Group of answer choices $12,000 $11,040 $9,200 $9,040
On January 1, 2018, Canseco Plumbing Fixtures purchased equipment for $36,000. Residual value at the end...
On January 1, 2018, Canseco Plumbing Fixtures purchased equipment for $36,000. Residual value at the end of an estimated four-year service life is expected to be $6,000. The company expects the machine to operate for 20,000 hours. The machine operated for 2,500 and 3,300 hours in 2018 and 2019, respectively. a. Calculate depreciation expense for 2018 and 2019 using straight line method. b. Calculate depreciation expense for 2018 and 2019 using sum-of-the-years'-digits method. c. Calculate depreciation expense for 2018 and...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT