Banko Incorporated manufactures sporting goods. The following information applies to a machine purchased on January 1, Year 1. Purchase price Delivery cost $58,000 $5,000 $3,000 Installation charge. Estimated life Estimated units Salvage estimate 150,000 $6,000 During Year 1, the machine produced 46,000 units, and during Year 2 it produced 48,000 units. Required 5 years a. Determine the amount of depreciation expense for Year 1 and Year 2 using straight-line method. b. Determine the amount of depreciation expense for Year 1 and Year 2 using double-declining-balance method. c. Determine the amount of depreciation expense for Year 1 and Year 2 using units of production method. d. Determine the amount of depreciation expense for Year 1 and Year 2 using MACRS assuming that the machine is clar

Banko Incorporated manufactures sporting goods. The following information applies to a machine purchased on January 1, Year 1. Purchase price Delivery cost $58,000 $5,000 $3,000 Installation charge. Estimated life Estimated units Salvage estimate 150,000 $6,000 During Year 1, the machine produced 46,000 units, and during Year 2 it produced 48,000 units. Required 5 years a. Determine the amount of depreciation expense for Year 1 and Year 2 using straight-line method. b. Determine the amount of depreciation expense for Year 1 and Year 2 using double-declining-balance method. c. Determine the amount of depreciation expense for Year 1 and Year 2 using units of production method. d. Determine the amount of depreciation expense for Year 1 and Year 2 using MACRS assuming that the machine is clar

Name: Banko Incorporated manufactures sporting goods. The following informa
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Description: Banko Incorporated manufactures sporting goods. The following information applies to a machine purchased on January 1, Year 1.Purchase priceDelivery costInstallation chargeEstimated lifeEstimated unitsSalvage estimateDuring Year 1, the machine produ

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets

Section19.2: Calculating Depreciation Expense

Problem 1OYO

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Deluxe Ezra Company purchases equipment on January 1, Year 1, at a cost of $469,000. The asset is expected to have a service life of 12 years and a salvage value of $40,000. Instructions a. Compute the amount of depreciation for each of Years 1 through 3 using the straight-line depreciation method. b. Compute the amount of depreciation for each of Years 1 through 3 using the sum-of-the-years’-digits method. c. Compute the amount of depreciation for each of Years 1 through 3 using the double-declining- balance method. (In performing your calculations, round constant percentage to the nearest one-hundredth of a point and round answers to the nearest dollar.)
Banko Inc. manufactures sporting goods. The following information applies to a machine purchased on January 1, Year 1: Purchase price Delivery cost Installation charge Estimated life $ 70,500 $ 6,000 $ 1,000 5 years Estimated units Salvage estimate 149, 000 $ 3,000 During Year 1, the machine produced 45,000 units and during Year 2, it produced 47,000 units. Required Determine the amount of depreciation expense for Year 1 and Year 2 using each of the following methods: Year 1 Year 2 a. Straight-line b. Double-declining-balance c. Units of production
Banko Incorporated manufactures sporting goods. The following information applies to a machine purchased on January 1, Year 1: Purchase price Delivery cost Installation charge Estimated life Estimated units $ 54,800 $ 6,000 $ 4,000 5 years 152,000 $ 4,000 Salvage estimate During Year 1, the machine produced 48,000 units, and during Year 2 it produced 50,000 units. Required: a. Determine the amount of depreciation expense for Year 1 and Year 2 using straight-line method. b. Determine the amount of depreciation expense for Year 1 and Year 2 using double-declining-balance method. c. Determine the amount of depreciation expense for Year 1 and Year 2 using units of production method. d. Determine the amount of depreciation expense for Year 1 and Year 2 using MACRS, assuming that the machine is classified as seven-year property. Note: Round your answers to the nearest dollar amount. MACRS table: 5-Year Year property, 7-Year property, 12345678 20.00 14.29 32.00 24.49 19.20 17.49 11.52 12.49…
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Calculate the Annual Depreciation for each listed asset. Assume the assets were purchased on January 1st and used for 12 months. The first asset has been completed. Utilize the straight-line depreciation method: (Original cost - Estimated Salvage Value) / Estimated Useful Life = Annual Depreciation Plant Asset Cash register Computer Vehicle Machinery Desk Asset Original Cost 500.00 4,500.00 15,500.00 8,000.00 2,500.00 Calculate the amount to be depreciated: Annual Depreciation Cash register Computer Vehicle Machinery Desk Estimated Salvage Value 25.00 800.00 3,000.00 1,200.00 200.00 67.86 Estimated Useful Life 7 years 5 years 10 years 5 years 15 years Questions? Contact your instructor!