Question

Numo Company purchased a new machine on September 1, 2017, at a cost of $145,000. The...

Numo Company purchased a new machine on September 1, 2017, at a cost of $145,000. The company estimated that the machine will have a salvage value of $25,000. The machine is expected to be used for 20,000 working hours during its 5-year life.

Instructions: compute the depreciation expense for the year 2017 according to the units-of-activity method, assuming machine usage was 3,100 hours.

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
Ivanhoe Company purchased a new machine on October 1, 2017, at a cost of $ 87,800....
Ivanhoe Company purchased a new machine on October 1, 2017, at a cost of $ 87,800. The company estimated that the machine has a salvage value of $ 8,800. The machine is expected to be used for  64,200 working hours during its  8-year life. Compute depreciation using the following methods in the year indicated. Declining-balance using double the straight-line rate for 2017 and 2018. (Round answers to 0 decimal places, e.g. 125) 2017 2018 Depreciation using the Declining-balance method $ enter a...
Stellar Corporation purchased a new machine for its assembly process on August 1, 2017. The cost...
Stellar Corporation purchased a new machine for its assembly process on August 1, 2017. The cost of this machine was $124,974. The company estimated that the machine would have a salvage value of $13,674 at the end of its service life. Its life is estimated at 5 years, and its working hours are estimated at 23,000 hours. Year-end is December 31. Compute the depreciation expense under the following methods. Each of the following should be considered unrelated. (Round depreciation rate...
Exercise 9-20 Blossom Company purchased a new machine on October 1, 2017, at a cost of...
Exercise 9-20 Blossom Company purchased a new machine on October 1, 2017, at a cost of $85,000. The company estimated that the machine has a salvage value of $7,000. The machine is expected to be used for 60,000 working hours during its 8-year life. Compute depreciation using the following methods in the year indicated. Declining-balance using double the straight-line rate for 2017 and 2018. (Round answers to 0 decimal places, e.g. 125) 2017 2018 Depreciation using the Declining-balance method $enter...
On January 1, 2017, a machine was purchased for $90,000. The machine has an estimated residual...
On January 1, 2017, a machine was purchased for $90,000. The machine has an estimated residual value of $6,000 and an estimated useful life of 5 years. The machine can operate for 100,000 hours before it needs to be replaced. The company closed its books on December 31 and operates the machine as follow; 2017, 20,000 hours; 2018, 25,000 hours; 2019, 15,000 hours; 2020, 30,000 hours; and 2021, 10,000 hours. ((((((((((((((Instructions)))))))))))))))) A) Compute the annual depreciation charges over the machine’s...
Stacey Ltd purchased a new machine on 1 September 2019 at a cost of $251,200 (excluding...
Stacey Ltd purchased a new machine on 1 September 2019 at a cost of $251,200 (excluding GST).    The entity estimated that the machine has a residual value of $28,600 (excluding GST).    The machine is expected to be used for 42,000 working hours during its 10 year life Assume a 31 December year-end.       Required      (a) Calculate the depreciation expense using the straight-line method for 2019 and 2020. (b) Calculate the depreciation expense using the diminishing-balance method and a depreciation rate...
Stacey Ltd purchased a new machine on 1 September 2019 at a cost of $243,000 (excluding...
Stacey Ltd purchased a new machine on 1 September 2019 at a cost of $243,000 (excluding GST).    The entity estimated that the machine has a residual value of $28,800 (excluding GST). The machine is expected to be used for 42,000 working hours during its 10 year life Assume a 31 December year-end.    Required    (a) Calculate the depreciation expense using the straight-line method for 2019 and 2020. (b) Calculate the depreciation expense using the diminishing-balance method and a...
Bridgeport Company purchased equipment for $228,800 on October 1, 2017. It is estimated that the equipment...
Bridgeport Company purchased equipment for $228,800 on October 1, 2017. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $13,200. Estimated production is 39,200 units and estimated working hours are 19,800. During 2017, Bridgeport uses the equipment for 530 hours and the equipment produces 1,100 units. Compute depreciation expense under each of the following methods. Bridgeport is on a calendar-year basis ending December 31. (Round rate per hour and rate...
Exercise 11-6 Bonita Company purchased equipment for $228,960 on October 1, 2017. It is estimated that...
Exercise 11-6 Bonita Company purchased equipment for $228,960 on October 1, 2017. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $12,720. Estimated production is 40,800 units and estimated working hours are 20,100. During 2017, Bonita uses the equipment for 520 hours and the equipment produces 1,100 units. Compute depreciation expense under each of the following methods. Bonita is on a calendar-year basis ending December 31. (Round rate per hour...
Delta Machine Company purchased a computerized assembly machine for $135,000 on January 1, 2018. Delta Machine...
Delta Machine Company purchased a computerized assembly machine for $135,000 on January 1, 2018. Delta Machine Company estimated that the machine would have a life of four years and a $25,000 salvage value. Delta Machine Company uses the straight-line method to compute depreciation expense. At the beginning of year 3 (2020) Delta discovered that the machine was quickly becoming obsolete and would have little value at the end of its useful life. Consequently, Delta Machine Company revised the estimated salvage...
Case 1. (5 Marks) A Company purchased a machine with a cost of $950,000. The company...
Case 1. A Company purchased a machine with a cost of $950,000. The company estimates the machine will have a useful life of 6 years and $50,000 salvage value. The machine is expected to produce 600,000 units. The machine is estimated produce 150,000 units in year 1. The machine is expected to run for 450,000 hours. The company projects in Year 1 the machine to run for 150,000 hours. Determine the depreciation expense for year 1 for a) b) c)...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT