ces Complete the following table given this information: Note: Do not round intermediate calculations. Cost of machine Residual value Useful life Actual production Use MACRS table. Estimated units machine will produce: 100,000 Method $ 94,000 $ 4,000 Straight line Units of production Declining balance MACRS (5-year class) 5 years Year 1 60,000 Year 2 15,000 Depreciation Expense Year 1 Year 2

Differential Analysis for Machine Replacement Proposal Franklin Printing Company is considering replacing a machine that has been used in its factory for four years. Relevant data associated with the operations of the old machine and the new machine, neither of which has any estimated residual value, are as follows: Old Machine Cost of machine, ten-year life $110,000 Annual depreciation (straight-line) 11,000 Annual manufacturing costs, excluding depreciation 39,100 Annual nonmanufacturing operating expenses 11,300 Annual revenue 94,600 Current estimated selling price of the machine 35,900     New Machine Cost of machine, six-year life $138,000 Annual depreciation (straight-line) 23,000 Estimated annual manufacturing costs, exclusive of depreciation 17,700 Annual nonmanufacturing operating expenses and revenue are not expected to be affected by purchase of the new machine. Required: 1.  Prepare a differential analysis as of November 8 comparing…

Complete the following table given this information: Note: Do not round intermediate calculations. Cost of machine Residual value Useful life Actual production Estimated units machine will produce: 100,000 Use MACRS table. Method $ 101,800 $ 5,300 Straight line Units of production Declining balance MACRS (5-year class) 5 years Year 1 73,000 Year 2 22,000 Depreciation Expense Year 1 Year 2

A company uses a machine to manufacture its product. The operating results of the company for a quarter follows: Sales $2,000,000 Cost of sales 500,000 Operating expenses excluding depreciation 300,000 Depreciation of machine 260,000 1,060,000 Net income $940,000 The present operation can continue or the machine can be used to produce a new product that could produce P2,200,000 revenue per quarter. The cost to manufacture the new product plus operating expenses, exclusive of depreciation will be P800,000. Which alternative is better? Support your answer with computation.