Carla vista Ltd. purchased a new machine on April 4 2017, at a cost of $176000. The company estimated that the machine would have a residual value of $18000. The machine is expected to be used for 10000 working hours during its four-year life. Actual machine usage was 1600 hours in 2017; 2200 hours in 2018; 2300 hours in 2019; 2000 hours in 2020; and 1900 hours in 2021. Carla vista has a December 31 year end. Solve for a straight-line for 2017 through to 2021, dimishing-balance using double the straight-line rate for 2017 through to 2021, and units of production for 2017 through to 2021

Carla vista Ltd. purchased a new machine on April 4 2017, at a cost of $176000. The company estimated that the machine would have a residual value of $18000. The machine is expected to be used for 10000 working hours during its four-year life. Actual machine usage was 1600 hours in 2017; 2200 hours in 2018; 2300 hours in 2019; 2000 hours in 2020; and 1900 hours in 2021. Carla vista has a December 31 year end. Solve for a straight-line for 2017 through to 2021, dimishing-balance using double the straight-line rate for 2017 through to 2021, and units of production for 2017 through to 2021

Name: Carla vista Ltd. purchased a new machine on April 4 2017, at a cost o
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: Carla vista Ltd. purchased a new machine on April 4 2017, at a cost of $176000. The company estimated that themachine would have a residual value of $18000. The machine is expected to be used for 10000 working hoursduring its four-year life. Actual

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 10PB: For each of the following unrelated situations, calculate the annual amortization expense and...

See similar textbooks

Similar questions

For each of the following unrelated situations, calculate the annual amortization expense and prepare a journal entry to record the expense: A. A patent with a ten-year remaining legal life was purchased for $300,000. The patent will be usable for another eight years. B. A patent was acquired on a new smartphone. The cost of the patent itself was only $24,000, but the market value of the patent is $600,000. The company expects to be able to use this patent for all twenty years of its life.
For each of the following unrelated situations, calculate the annual amortization expense and prepare a journal entry to record the expense: A. A patent with a seventeen-year remaining legal life was purchased for $850,000. The patent will be usable for another six years. B. A patent was acquired on a new tablet. The cost of the patent itself was only $12,000, but the market value of the patent is $150,000. The company expects to be able to use this patent for all twenty years of its life.
On January 1, 2017, Henry Manufacturing Corporation purchased a machine for $40,600,000. Henry's management expects to use the machine for 33,000 hours over the next six years. The estimated residual value of the machine at the end of the sixth year is $45,000. The machine was used for 3,600 hours in 2017 and 5,000 hours in 2018. Calculate the book value of the machine at the end of 2018 if the company uses the units-of-production method of depreciation. (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)
Ivanhoe Ltd. purchased a new machine on April 4, 2017, at a cost of $188,000. The company estimated that the machine would have a residual value of $16,000. The machine is expected to be used for 10,750 working hours during its four-year life. Actual machine usage was 1,600 hours in 2017; 2,100 hours in 2018; 2,300 hours in 2019; 2,100 hours in 2020; and 1,700 hours in 2021. Ivanhoe has a December 31 year end. Calculate depreciation for the machine under each of the following methods: Round expense per unit to 2 decimal places(1) Straight-line for 2017 through to 2021. 2017 expense $enter a dollar amount 2018 expense $enter a dollar amount 2019 expense $enter a dollar amount 2020 expense $enter a dollar amount 2021 expense $enter a dollar amount (2) Diminishing-balance using double the straight-line rate for 2017 through to 2021. 2017 expense $enter a dollar amount 2018 expense $enter a dollar amount 2019 expense…
Mama's Frid Chicken bought equipment on January 2, 2018, for $30,000. The equipment was expected to remain in service for four years and to operate for 4,8000 hours. At the end of the equipment's useful life, Mama's estimates that its residual value will be $6,000. The equipment operated for 480 hours the first year, 1,440 hours the second year, 1,920 hours the third year, and 960 hours the fourth year. Prepare a schedule of depreciation expense, accumulated depreciation, and book value per year for the equipment under the three depreciation methods: straight-line, units-of-production, and double-declining-balance. Show your computations. Note: Three depreciation schedules must be prepared. Which method tracks the wear and tear on the equipment most closely?
QI-Aws Company purchases a factory machine at a cost of $18,000 on January 1, 2012. Aws expects the machine to have a salvage value (residual value) of $2,000 at the end of Its 4- year useful life. During its useful life, the machine is expected to be used 160,000 hours. Actual Annual hourly use was: 2012, 40,000; 2013, 60,000; 2014, 35,000; 2015, 25,000 Instructions a- Prepare depreciation schedules for the following methods: (a) straight-line, (b) units-of-production, and (c) declining-balance (DDB Method) b-Show the book value of the machine at the end of 2014 at the balance sheet c- Prepare the journal entries on 1/1/2012, 31/6/2014 Q2- On January 1, 2012, XYZ Co. purchased a car at a historical cost of $28,000. The car has been depreciated by the straight-line method using a 4-year useful life and a $4,000 salvage value (residual value). The company's financial year ends on December 31. Instructions Prepare the journal entry or entries to record the disposal (discard) of the car…
On January 1, 2014, Courier Inc. purchased new equipment that had a total cost (including shipping and installation) of $79,000. The equipment is expected to have a useful life of four years or produce a total of 119,000 units. At the end of its life, the equipment is expected to have a residual value of $4,400. The equipment is expected to produce 28,560 units in 2014; 30,940 units in 2015; 33,320 units in 2016; and 26,180 units in 2017. Courier Inc.'s fiscal year ends on December 31. In the table below, fill in the missing depreciation expense and accumulated depreciation amounts using the straight-line, double-declining-balance, and units-of-production methods. Do not round your intermediate calculation. When required, round your answers to the nearest dollar. Cost$79,000 Depreciation Expense Accumulated Depreciation Year Straight-lineMethod Double-Declining-Balance Method Unit-of-ProductionMethod Straight-lineMethod Double-Declining-Balance Method Unit-of-ProductionMethod…
Seconds Fried Chicken bought equipment on January 2, 2018, for $39,000. The equipment was expected to remain in service for four years and to operate for 8,250 hours. At the end of the equipment's useful life, Seconds estimates that its residual value will be $6,000. The equipment operated for 825 hours the first year, 2,475 hours the second year, 3,300 hours the third year, and 1,650 hours the fourth year. Requirement 1. Prepare a schedule of depreciation expense, accumulated depreciation, and book value per year for the equipment under the three depreciation methods: straight-line, units-of-production, and double-declining-balance. Show your computations. Note: Three depreciation schedules must be prepared. Begin by preparing a depreciation schedule using the straight-line method. Straight-Line Depreciation Schedule Depreciation for the Year Asset Depreciable Useful Depreciation Accumulated Вook Date Cost Cost Life Expense Depreciation Value 1-2-2018 12-31-2018 12-31-2019 12-31-2020…
Ortiz Box Company purchased a patent on a box - folding machine for $160,000 on July 1, 2012. The useful life was estimated at 20 years. There were 19 years remaining on the patent when it was purchased. In early 2019, the CEO of Ortiz noted a decrease, industry - wide, in the demand for folded boxes. The CEO estimated that the patent had a remaining useful life of 5 years. An impairment analysis was done as of June 30, 2019. Expected annual cash flows over the next 5 years were estimated at $20,000. The discount rate used by Ortiz is 5%. How much amortization expense was recognized by Ortiz in 2019 and 2020, respectively? Select one: a. $4,211 b. $7,330 c. $ 7,818 d. $12,870 e. $12, 659
On 1 July 2019, Briarly Pty Ltd purchased a new printing machine for $152,000. The company expected the machine to be used for ten (10) years or 20,000 machine hours, with an estimated residual value of $2,000 at the end of its useful life. Actual usage of the machine for the first three (3) years was noted as follows: Year 1: 400 hours Year 2: 1200 hours Year 3: 2000 hours Required: Calculate the depreciation expense for the second year using each of the methods below: Straight-line Units of production Reducing balance method at the rate of 20% each year 2. If the straight – line method was used and the machine was sold at the end of year 2 for $110,000, calculate the carrying amount of the machine at the end of year 2. 3. Prepare the journal entry to record the sale of the machine.
The ABC Company closes its books every December 31. On August 1, 2011, they bought a machine for P300,000. The machi ne is expected to have a useful life of 10 years with no scrap value. On August 1, 2015, P36,000 was paid for the major overh aul of the machine which extended the life of the machine for another two years. The machine was sold for P185,000 on June 30, 2016. The depreciation expense for the machine for 2015 was: a P28,750 b. P30,000 C. P27,000 d. P32,000 e. None of the above Answer (LETTER ONLY):
Winston Printing purchased a new machine on January 1. 2020, at a cost of 120000$. The company estimated that the machine will have a residual value of 12000$. The machine is expected to be used for 12000 working hours during its 4 year life. The depreciable cost per unite a. 10$ per hour O b. 12$ per hour O c. 5S per hour O d. 9S per hour