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 or100,000 units.Inverness uses the machine in its manufacturing operations andproduces 20,000 units in Year 2023, 33,000 units in Year 2024 and19,000 units in Year 2025, 17,000 units in Year 2026 and 6,000 units inYear 2027 and 5,000 units in Year 2027.Required:a) Compute depreciation expense for Years 2023 and 2024 using thefollowing methods:• straight line•units-of-production• double declining balance■ DEPRECIATION EXPENSE2023DOUBLESTRAIGHT-YEARLINEMETHODUNITS OFPRODUCTIONDECLININGBALANCEMETHODMETHOD2024b) Indicate what is the balance of Accumulated Depreciation at the endof each year using the Units-of-Production MethodYEARSACCUMULATEDDEPRECIATION20232024c) What is the book value at the end of 2024 using the Unit-of-Production Method?

The straight-line method of depreciation spreads the cost of the asset evenly over its useful life.…

Answered: 1. Rufiel Corporation purchased a new…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Problem 1Q

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! Required information [The following information applies to the questions displayed below.] Wardell Company purchased a minicomputer on January 1, 2022, at a cost of $40,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $4,000. On January 1, 2024, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $900. Required: 1. Prepare the year-end journal entry for depreciation on December 31, 2024. No depreciation was recorded during the year. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to nearest whole dollar. View transaction list t 1 ences Journal entry worksheet 1 Record depreciation expense for 2024. Note: Enter debits before credits. Event 1 General Journal Debit Credit
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