Banko Incorporated manufactures sporting goods. The following information applies to a machine purchased on January 1,Year 1:Purchase priceDelivery costInstallation chargeEstimated lifeEstimated units$ 54,800$ 6,000$ 4,0005 years152,000$ 4,000Salvage estimateDuring 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 isclassified as seven-year property.Note: Round your answers to the nearest dollar amount.MACRS table:5-YearYearproperty,7-Yearproperty,1234567820.0014.2932.0024.4919.2017.4911.5212.4911.528.935.768.928.934.46a. Depreciation expenseYear 1Year 2

The objective of the question is to calculate the depreciation expense for Year 1 and Year 2 using…

Answered: Banko Incorporated manufactures…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter10: Long-lived Tangible And Intangible Assets

Section: Chapter Questions

Problem 29P

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When depreciation is recorded each period, what account is debited? a. Depreciation Expense b. Cash c. Accumulated Depreciation d. The fixed asset account involved Use the following information for Multiple-Choice Questions 7-4 through 7-6: Cox Inc. acquired a machine for on January 1, 2019. The machine has a salvage value of $20,000 and a 5-year useful life. Cox expects the machine to run for 15,000 machine hours. The machine was actually used for 4,200 hours in 2019 and 3,450 hours in 2020.
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 Salvage estimate During Year 1, the machine produced 46,000 units, and during Year 2 it produced 48,000 units. Required MACRS table: 5-Year Year property, & 20.00 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. (Round your answers to the nearest dollar amount.) 1 2 3 4 $58,000 $5,000 $3,000 32.00 19.20 11.52 11.52 5.76 7-Year property, 14.29 24.49 17.49 12.49 8.93 8.92 8.93 4.46 5…
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
Given the data, prepare a depreciation table (Depreciation Expense, Accumulated Depreciation, Carrying Amount) for the following methods: 1. Straight line 2. Service hours 3. Production method Also, identify the Gain or Loss for each year and every deprecation method if the machine is sold at: End of 1st Yr - 500,000 End of 2nd Yr - 360,000 End of 3rd Yr - 260,000 End of 4th Yr - 165,000 End of 5th Yr - 40,000
Banko Incorporated manufactures sporting goods. The following information applies to a machine purchased on January 1, Year 1. Purchase price $85,800 Delivery cost $5,000 Installation charge $2,000 Estimated life 5 years Estimated units 148,000 Salvage estimate $4,000 During Year 1, the machine produced 44,000 units, and during Year 2 it produced 46,000 units. Required Determine the amount of depreciation expense for Year 1 and Year 2 using straight-line method. Determine the amount of depreciation expense for Year 1 and Year 2 using double-declining-balance method. Determine the amount of depreciation expense for Year 1 and Year 2 using units of production method. Determine the amount of depreciation expense for Year 1 and Year 2 using MACRS, assuming that the machine is classified as seven-year property. (Round your answers to the nearest dollar amount.) MACRS table: Year 5-Year property,% 7-Year property,% 1 20.00 14.29 2 32.00 24.49 3…
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 Estimated units Salvage estimate $ 70,500 $ 6,000 $ 1,000 5 years 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
eBook Show Me How Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $72,000. The equipment was expected to have a useful life of three years, or 18,000 operating hours, and a residual value of $4,500. The equipment was used for 7,600 hours during Year 1, 6,000 hours in Year 2, and 4,400 hours in Year 3. Required: 1. Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2 and Year 3 by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the three years by each method. Round the answer for each year to the nearest whole dollar. Depreciation Expense Year Straight-Line Method Units-of-Activity Method Double-Declining-Balance Method Year 1 $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 Year 2 fill in the blank 4 fill in the blank 5 fill in the blank 6…
B. D E G H. J K 3. Create the fixed asset supporting schedule for the following purchases: Two fixed assets are purchased during the year: Computer server on 5/4/2014 for $2,214.55 Office furniture on 11/17/2014 for $1,234.54 MACRS 150% is going to be the depreciation method used and depreciation adjusting entries are made at the end of each month. (check figure: total depreciation expense = 107.63) What will be the depreciation general journal adjusting entry on 12/31/2014?
Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.] On April 1, Cyclone's Co. purchases a trencher for $302,000. The machine is expected to last five years and have a salvage value of $51,000. Exercise 8-11 Straight-line, partial-year depreciation LO C2 Compute depreciation expense at December 31 for the first and second year assuming the company uses the straight-line method. Choose Numerator: Choose Denominator: Annual Depreciation Annual depreciation Depreciation Expense Year Annual Depreciation Fraction of Year First year Second year
m/ilrn/takeAssignment/takeAssignmentMain.do?invoker-assignments&takeAssignmentSession Locator-assign... eBook Show Me How A ✩ Comparing three depreciation methods Dexter Industries purchased packaging equipment on January 8 for $112,500. The equipment was expected to have a useful life of 3 years, or 22,500 operating hours, and a residual value of $4,500. The equipment was used for 9,000 hours during Year 1, 6,750 hours in Year 2, and 6,750 hours in Year 3. Required: 1. Determine the amount of depreciation expense for the 3 years ending December 31, by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the 3 years by each method. Do not round intermediate calculations when determining the depreciation rate. Round the final answers for each year to the nearest whole dollar. Year Year 1 Year 2 Year 3 Total Straight-Line Method Depreciation Expense Units-of-Activity Method 2. What…
A copy machine acquired with a cost of $1,410 has an estimated useful life of 4 years. It is also expected to have a useful operating life of 13,350 copies. Assuming that it will have a residual value of $75, determine the depreciation for the first year by the following methods: For part a, enter your answer to two decimal places. a. Straight-line method $fill in the blank 1 b. Double-declining-balance method $fill in the blank 2 c. Units-of-activity method (4,500 copies were made the first year) $fill in the blank 3
Required information Use the following information for the Exercises below. (The following information applies to the questions displayed below.] On April 1, Cyclone's Co. purchases a trencher for $302,000. The machine is expected to last five years and have a salvage value of $51,000. Exercise 8-12 Double-declining-balance, partlal-year depreciation LO C2 Compute depreciation expense at December 31 for both the first year and second year assuming the company uses the double- declining-balance method. (Enter all amounts as positive values.) Depreciation for the Period End of Period Beginning of Annual Period Period Book Value Depreciation Rate Partial Year Depreciation Expense Accumulated Depreciation Book Value Year 1 Year 2

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