1. Rufiel Corporation purchased a new machine on January 1, 2023. The machine cost $300,000 and had an estimated salvage value of $40,000. Inverness estimated that the machine will have a useful life of 8 years or 100,000 units. Inverness uses the machine in its manufacturing operations and produces 20,000 units in Year 2023, 33,000 units in Year 2024 and 19,000 units in Year 2025, 17,000 units in Year 2026 and 6,000 units in Year 2027 and 5,000 units in Year 2027. Required: a) Compute depreciation expense for Years 2023 and 2024 using the following methods: • straight line • units-of-production • double declining balance ■ DEPRECIATION EXPENSE 2023 DOUBLE STRAIGHT- YEAR LINE METHOD UNITS OF PRODUCTION DECLINING BALANCE METHOD METHOD 2024 b) Indicate what is the balance of Accumulated Depreciation at the end of each year using the Units-of-Production Method YEARS ACCUMULATED DEPRECIATION 2023 2024 c) What is the book value at the end of 2024 using the Unit-of- Production Method?

On January 1, 2020, Northeast USA Transportation Company purchased a used aircraft at a cost of $64,400,000. Northeast USA expects the plane to remain useful for five years (6.000,000 miles) and to have a residual value of $6,400,000. Northeast USA expects to fly the plane 725,000 miles the first year, 1,300,000 miles each year during the second, third, and fourth years, and 1,375,000 miles the last year. Read the requirements 1. Compute Northeast USA's depreciation for the first two years on the plane using the straight-line method, the units-of-production method, and the double-declining balance method. a. Straight-line method Using the straight-line method, depreciation is for 2020 and for 2021.

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On March 1, 2024, a company entered into an agreement with the state to obtain the rights to operate a mineral mine for $6 million. The mine is expected to produce 155,000 tons of mineral. As part of the agreement, the company agrees to restore the land to its original condition after mining operations are completed in approximately five years. Management has provided the following possible outflows for the restoration costs that will occur five years from now: (PV of $1. PVA of $1) Cash Outflow $ 520,000 675,000 830,000 Probability 20% 30% 50% The company's credit-adjusted risk-free interest rate is 9%. During 2024, the company extracted 27,900 tons of ore from the mine. How much accretion expense will the company record in its income statement for the 2024 calendar year? Multiple Choice

replace its current equipment with new high-tech equipment. The existing equipment was purchased 5 years ago at a cost of $121,000. At that time, the equipment had an expected life of 10 years, with no expected salvage value. The equipment is being depreciated on a straight-line basis. Currently, the market value of the old equipment is $42,900. The new equipment can be bought for $174,340, including installation. Over its 10-year life, it will reduce operating expenses from $190,000 to $145,400 for the first six years, and from $203,600 to $193,600 for the last four years. Net working capital requirements will also increase by $20,200 at the time of replacement. It is estimated that the company can sell the new equipment for $24,400 at the end of its life. Since the new equipment's cash flows are relatively certain, the project's cost of capital is set at 9%, compared with 15% for an average-risk project. The firm's maximum acceptable payback period is 5 years. Click here to view the…

Devon Manufacturing Company purchased a new canning machine on July 1, 2015, for $190,000. The estimated salvage value is $15,000. The company uses units-of-production depreciation and estimates the machine will produce 125,000 units during its useful life. In 2015, the company manufactured 5,000 units after acquiring the machine. Depreciation expense for 2015 will be   $7,600 $6,500 $14,000 $7,000

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Russell Industries is considering replacing a fully depreciated machine that has a remaining useful life of 10 years with a​ newer, more sophisticated machine. The new machine will cost $194,000 and will require $29,400 in installation costs. It will be depreciated under MACRS using a​ 5-year recovery period​ Percentage by recovery​ year* Recovery year 3 years 5 years 7 years 10 years 1 33​% 20​% 14​% 10​% 2 45​% 32​% 25​% 18​% 3 15​% 19​% 18​% 14​% 4 7​% 12​% 12​% 12​% 5   12​% 9​% 9​% 6   5​% 9​% 8​% 7     9​% 7​% 8     4​% 6​% 9       6​% 10       6​% 11       4​% Totals 100​% 100​% 100​% 100​%  A $30,000 increase in net working capital will be required to support the new machine. The​ firm's managers plan to evaluate the potential replacement over a​…