rrtrfrrererr Sandhill Limited purchased equipment on February 1, 2024, at a cost of $253,220. As the CFO of the company, you are considering themerits of using the diminishing-balance or units-of-production method of depreciation instead of the straight-line method, which iscurrently being used for other equipment. The new equipment has an estimated residual value of $20,000 and an estimated useful lifeof either five years or 89,700 units. Demand for the products produced by the equipment is sporadic so the equipment will be usedmore in some years than in others. Assume the equipment produces the following numbers of units each year: 14,000 units in 2024;28,000 units in 2025; 20,000 units in 2026: 15,000 units in 2027: 12,000 units in 2028; and 700 units in 2029. Sandhill has aDecember 31 year end.(a)Prepare separate depreciation schedules for the life of the equipment using: (Round depreciation per unit to 2 decimal places, eg

The expected decline in the value of a fixed asset over the course of its use is called…

Answered: Prepare separate depreciation schedules…

Business

Accounting

Prepare separate depreciation schedules for the life of the equipment using: (Round- 2751

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 13P

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Pharoah Limited purchased equipment on February 1, 2024, at a cost of $160,790. As the CFO of the company, you are considering the merits of using the diminishing-balance or units-of-production method of depreciation instead of the straight-line method, which is currently being used for other equipment. The new equipment has an estimated residual value of $10,000 and an estimated useful life of either five years or 88,700 units. Demand for the products produced by the equipment is sporadic so the equipment will be used more in some years than in others. Assume the equipment produces the following numbers of units each year: 15,000 units in 2024; 26,000 units in 2025; 20,000 units in 2026; 15,000 units in 2027; 12,000 units in 2028; and 700 units in 2029. Pharoah has a December 31 year end.
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At the beginning of 2022, Robotics Incorporated acquired a manufacturing facility for $13.5 million. $10.5 million of the purchase price was allocated to the building. Depreciation for 2022 and 2023 was calculated using the straight-line method, a 25-year useful life, and a $2.5 million residual value. Assume that 2022 depreciation was incorrectly recorded as $32,000. This error was discovered in 2024. Required: 1. Record the journal entry needed in 2024 to correct the error. 2. What is depreciation on the building for 2024, assuming no change in estimate of useful life or residual value? Complete this question by entering your answers in the tabs below. General Journal Depreciation Record the journal entry needed in 2024 to correct the error. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answe whole dollars, and not in millions. View transaction list Journal entry worksheet < 1
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At the beginning of 2022, Robotics Incorporated acquired a manufacturing facility for $12.9 million. $9.9 million of the purchase price was allocated to the building. Depreciation for 2022 and 2023 was calculated using the straight-line method, a 25-year useful life, and a $1.9 million residual value. In 2024, the company switched to the double-declining-balance depreciation method. What is depreciation on the building for 2024?
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