On 25 March 2020, Miracle Company bought a machine at $1,350,000 with an estimated useful life of 15 years and no residual value. The machine is expected to operate 270,000 hours. The company adjusts its account annually with the year-end date on 31 December. Required: (a) Compute(showworkings)depreciationexpensesforthemachinein2020and2021by: (i) Straight-line (using half year convention); (ii) 150%-declining-balance (calculate to the nearest whole month); and (iii) Units-of-output method (hours of operation: 12,000 in 2020; 18,000 in 2021) (b) AssumeMiracleCompanyadoptsthestraight-linemethodin(a)(i)above.On5April2022themachine was disposed for $1,150,000 cash. (i) Journalize depreciation of the machine for 2022 before the disposal. (ii) Journalize disposal of the machine on 5 April 2022.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On 25 March 2020, Miracle Company bought a machine at $1,350,000 with an estimated useful life of 15 years and no residual value. The machine is expected to operate 270,000 hours. The company adjusts its account annually with the year-end date on 31 December. Required: (a) Compute(showworkings)depreciationexpensesforthemachinein2020and2021by: (i) Straight-line (using half year convention); (ii) 150%-declining-balance (calculate to the nearest whole month); and (iii) Units-of-output method (hours of operation: 12,000 in 2020; 18,000 in 2021) (b) AssumeMiracleCompanyadoptsthestraight-linemethodin(a)(i)above.On5April2022themachine was disposed for $1,150,000 cash. (i) Journalize depreciation of the machine for 2022 before the disposal. (ii) Journalize disposal of the machine on 5 April 2022.
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