Question

Blue Corp. purchased machinery for $343,350 on May 1, 2017. It is estimated that it will have a useful life of 10 years, salvage value of $16,350, production of 261,600 units, and working hours of 25,000. During 2018, Blue Corp. uses the machinery for 2,650 hours, and the machinery produces 27,795 units.

From the information given, compute the depreciation charge for
2018 under each of the following methods. *(Round
intermediate calculations to 2 decimal places, e.g. 5.25 and final
answers to 0 decimal places, e.g. 45,892.)*

Straight-line---

Units-of-output---

Working hours---

Sum-of-the-years'-digits--

Declining-balance (use 20% as the annual rate)---

Answer #1

Exercise 11-4 Crane Corp. purchased machinery for $330,750 on
May 1, 2017. It is estimated that it will have a useful life of 10
years, salvage value of $15,750, production of 252,000 units, and
working hours of 25,000. During 2018, Crane Corp. uses the
machinery for 2,650 hours, and the machinery produces 26,775 units.
From the information given, compute the depreciation charge for
2018 under each of the following methods. (Round intermediate
calculations to 2 decimal places, e.g. 5.25 and...

Concord Corp. purchased machinery for $465,000 on May 1, 2017.
It is estimated that it will have a useful life of 10 years,
residual value of $15,000, production of 360,000 units, and 25,000
working hours. The machinery will have a physical life of 15 years
and a salvage value of $3,000. During 2018, Concord Corp. used the
machinery for 2,550 hours and the machinery produced 25,500 units.
Concord prepares financial statements in accordance with
IFRS.
From the information given, calculate...

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 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...

Question 9
Bridgeport Corp. purchased machinery for $492,000 on May 1,
2017. It is estimated that it will have a useful life of 10 years,
residual value of $12,000, production of 192,000 units, and 40,000
working hours. The machinery will have a physical life of 15 years
and a salvage value of $3,000. During 2018, Bridgeport Corp. used
the machinery for 2,350 hours and the machinery produced 25,000
units. Bridgeport prepares financial statements in accordance with
IFRS.
From the information...

Marigold Corp. purchased machinery for $576,000 on May 1, 2017.
It is estimated that it will have a useful life of 10 years,
residual value of $16,000, production of 560,000 units, and 40,000
working hours. The machinery will have a physical life of 15 years
and a salvage value of $3,000. During 2018, Marigold Corp. used the
machinery for 2,200 hours and the machinery produced 26,500 units.
Marigold prepares financial statements in accordance with
IFRS.
From the information given, calculate...

Marigold Corp. purchased machinery for $576,000 on May 1, 2017.
It is estimated that it will have a useful life of 10 years,
residual value of $16,000, production of 560,000 units, and 40,000
working hours. The machinery will have a physical life of 15 years
and a salvage value of $3,000. During 2018, Marigold Corp. used the
machinery for 2,200 hours and the machinery produced 26,500 units.
Marigold prepares financial statements in accordance with
IFRS.
From the information given, calculate...

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...

On January 1, 2018, a machine was purchased for $105,000. The
machine has an estimated salvage value of $8,100 and an estimated
useful life of 5 years. The machine can operate for 114,000 hours
before it needs to be replaced. The company closed its books on
December 31 and operates the machine as follows: 2018, 22,800 hrs;
2019, 28,500 hrs; 2020, 17,100 hrs; 2021, 34,200 hrs; and 2022,
11,400 hrs.
Compute the annual depreciation charges over the machine’s life
assuming...

On January 1, 2015, a machine was purchased for $90,900. The
machine has an estimated salvage value of $6,060 and an estimated
useful life of 5 years. The company closed its books on December
31. Assume a fiscal year-end of September 30. Compute the
annual depreciation charges over the asset’s life applying the
following methods. (Round answers to 0 decimal places,
e.g. 45,892.)
Year Sum-of-the-years'-digits
method
2015 - Answer is $ 21210
2016
2017
2018
2019
2020

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