On January 2, 2021, Archer Company, a skateboard manufacturer, installed a computerized machine in its factory at a cost of $150,100. The machine's useful life was estimated at four years or a total of 185,000 units with a $28,000 trade-in value. Archer Company's year- end is December 31. Calculate depreciation for each year of the machine's estimated useful life under each of the following methods: (Do not round intermediate calculations.) a. Straight-line b. Double-declining-balance c. Units-of-production, assuming actual units produced were: Year Units Year 2021 2022 2023 2024 Total 2022 2023 2024 2021 39,200 42,500 53,500 65,000 Straight-Line Double-Declining-Balance Units-of-Production

On January 2, 2021, Archer Company, a skateboard manufacturer, installed a computerized machine in its factory at a cost of $150,100. The machine's useful life was estimated at four years or a total of 185,000 units with a $28,000 trade-in value. Archer Company's year- end is December 31. Calculate depreciation for each year of the machine's estimated useful life under each of the following methods: (Do not round intermediate calculations.) a. Straight-line b. Double-declining-balance c. Units-of-production, assuming actual units produced were: Year Units Year 2021 2022 2023 2024 Total 2022 2023 2024 2021 39,200 42,500 53,500 65,000 Straight-Line Double-Declining-Balance Units-of-Production

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Description: Please don't give image format On January 2, 2021, Archer Company, a skateboard manufacturer, installed a computerized machine in its factory at a cost of $150,100.The machine's useful life was estimated at four years or a total of 185,000 units with

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 8P: Kam Company purchased a machine on January 2, 2019, for 20,000. The machine had an expected life of...

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Kam Company purchased a machine on January 2, 2019, for 20,000. The machine had an expected life of 8 years and a residual value of 300. The double-declining-balance method of depreciation is used. Required: 1. Compute the depreciation expense for each year of the assets life and book value at the end of each year. 2. Assuming that the company has a policy of always changing to the straight-line method at the midpoint of the assets life, compute the depreciation expense for each year of the assets life. 3. Assuming that the company always changes to the straight-line method at the beginning of the year when the annual straight-line amount exceeds the double-declining-balance amount, compute the depreciation expense for each year of the assets life.
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