At the beginning of last year, Bratworth Corporation purchased a piece of heavyequipment for $99,000. The equipment has a life of five years or 100,000 hours. The estimatedresidual value is $9,000. Bratworth used the equipment for 21,000 hours last year and 27,000hours this year. Depreciation expense for year two using double-declining-balance (DDB) andunits-of-production methods would be as follows:DDB UOPa. $23,760 $26,730b. $21,600 $26,730c. $21,600 $24,300d. $23,760 $24,300

Mercury Incorporated purchased equipment in 2022 at a cost of $212,000. The equipment was expected to produce 560,000 units over the next five years and have a residual value of $44,000. The equipment was sold for $112,500 part way through 2024. Actual production in each year was: 2022 = 78,000 units; 2023 = 124,000 units; 2024 = 63,000 units. Mercury uses units-of-production depreciation, and all depreciation has been recorded through the disposal date. Calculate the gain or loss on the sale. Prepare the journal entry to record the sale. Assuming that the equipment was instead sold for $145,500, calculate the gain or loss on the sale. Prepare the journal entry to record the sale in requirement 3.

A new machine tool is being purchased for $260,000 and is expected to have a $36,000 salvage value at the end of its 5-year useful life. Assume any remaining depreciation is claimed in the last year. Compute the depreciation schedules for this capital asset, using the following methods: (a) Straight-line depreciation (b) MACRS Note: No statement is required for this problem.

A company purchased factory equipment for $640000. It is estimated that the equipment will have a $62000 salvage value at the end of its estimated 5-year useful life. If the company uses the double-declining-balance method of depreciation, what would be the amount of annual depreciation recorded for the second year after purchase?

Susquehanna Company purchased an asset at the beginning of the current year for $250,000. The estimated residual value is $25,000. Susquehanna estimates that the asset will be used for 10 years and uses straiglt-line depreciation. Calculate the depreciation expense per year.

Strong Metals Incorporated purchased a new stamping machine at the beginning of the year at a cost of $1,235,000. The estimated residual value was $65,000. Assume that the estimated useful life was five years and the estimated productive life of the machine was 300,000 units. Actual annual production was as follows: Year Units 1 70,000 2 67,000 3 50,000 4 73,000 5 40,000 Required: 1. Complete a separate depreciation schedule for each of the alternative methods. Straight-line. Units-of-production. Double-declining-balance.

The Masters Corporation purchased a piece of machinery for $300,000. The expected useful life (EUL) of the machine is 10 years. Machinery of this type normally has a salvage value of approximately 17 percent of the purchase price (use $50,000 for salvage value in this case.) Using the accounting/finance functions in Excel, complete the depreciation worksheet in Exercise11.xls in the following steps: 1. Use the following three methods to compute the depreciation in columns B, C, and D: (1) double- declining balance, (2) straight-line, and (3) sum-of-the-years’ digits. Columns F, G, and H should show the book value of each method for the 10 periods (10 years). Formulas should be used in the empty cells so that a change in the cost, salvage value, or expected useful life of the machinery automatically updates the worksheet. 2. PDF page 1: Print cells A8:H20 into one page with proper format. 3. PDF page 2: Print cell formulas in Cells A15:H15. You may edit the cell…

Susquehanna Company purchased an asset at the beginning of the current year for $250,000. The estimated residual value is $25,000. Susquehanna estimates that the asset will be used for 10 years and uses straight-line depreciation. Calculate the depreciation expense per year. $fill in the blank 1 per year.

The XYZ Corporation is investing in a $100,000 piece of machinery with 5-year useful life and $20,000 residual value. a) Using the straight-line method, how much depreciation occurs in year 1? b) Using the double-declining method, how much depreciation occurs in year 1?

Strong Metals Incorporated purchased a new stamping machine at the beginning of the year at a cost of $1,900,000. The estimated residual value was $100,000. Assume that the estimated useful life was five years and the estimated productive life of the machine was 300,000 units. Actual annual production was as follows: Year Units 1 70,000 2 67,000 3 50,000 4 73,000 5 40,000 Required: 1. Complete a separate depreciation schedule for each of the alternative methods. a. Straight-line. b. Units-of-production. c. Double-declining-balance.