FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $80,600. The machine's useful life is estimated at 10 years, or 388,000 units of product, with a $3,000 salvage value. During its second year, the machine produces 32,800 units of product.
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- [The following information applies to the questions displayed below.] Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $48,400. The machine's useful life is estimated at 10 years, or 394,000 units of product, with a $9,000 salvage value. During its second year, the machine produces 33,400 units of product. Determine the machine's second-year depreciation and year end book value under the straight-line method. Straight-Line Depreciation Annual Choose Numerator: / Choose Denominator: E> Depreciation Year 2 Depreciation Year end book value (Year 2) II II IIarrow_forwardA machine with a cost of $67,523.00 has an estimated residual value of $4,597.00 and an estimated life of 3 years or 15,348 hours. It is to be depreciated by the units-of-production method. What is the amount of depreciation for the second full year, during which the machine was used 3,228 hours? Select the correct answer. $14,201.48 $20,975.33 $41,950.67 $13,234.63arrow_forwardRequired information [The following information applies to the questions displayed below.] Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $44,200. The machine's useful life is estimated at 10 years, or 392,000 units of product, with a $5,000 salvage value. During its second year, the machine produces 33,200 units of product. Determine the machine's second-year depreciation using the double-declining-balance method. First year's depreciation Second year's depreciation Double-declining-balance Depreciation Choose Factors: X X X X Choose Factor(%) = = Depreciation expense = Annual Depreciation Expense =arrow_forward
- Sterling Steel Inc. purchased a new stamping machine at the beginning of the year at a cost of $680,000. The estimated residual value was $70,500. Assume that the estimated useful life was five years. Required: 1. Complete a depreciation schedule for the straight-line method. (Round your answers to the nearest dollar amount. Do not round your intermediate calculations. Omit the "$" sign in your response.) a.Straight-line. Year At acquisition 1 2345 2 Depreciation Expense $ Accumulated Depreciation SA Net Book Value 27arrow_forwardSabel Co. purchased assembly equipment for $608,000 on January 1, Year 1. The equipment is expected to have a useful life of 320,000 miles and a salvage value of $32,000. Actual mileage was as follows: Year 1 88,000 Year 2 84,000 Year 3 79,000 Year 4 48,000 Year 5 22,000 Required a. Compute the depreciation for each of the five years, assuming the use of units-of-production depreciation. b. Assume that Sabel earns $242,000 of cash revenue during Year 1. Record the purchase of the equipment and the recognition of the revenue and the depreciation expense for the first year in the following financial statements model. c. Assume that Sabel sold the equipment at the end of the fifth year for $33,800. Calculate the amount of gain or loss on the sale.arrow_forwardLooking for Decpreciation for Year 4 under Units of production.arrow_forward
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