Homy Ice Cream Company bought a new ice cream maker at the beginning of the year at a cost of $7,600. The estimated useful life was four years, and the residual value was $800. Assume that the estimated productive life of the machine was 10,000 hours. Actual annual usage was 3,600 hours in year 1; 2,800 hours in year 2; 1,900 hours in year 3; and 1,700 hours in year 4. Required: 1-a. Complete a separate depreciation schedule by using Straight-line method. (Round your answers to the nearest dollar amount. Make sure that the carrying amount at the end of year 4 is equal to the residual value. Depreciation expense for the last period should be calculated as Carrying value of 3rd year minus residual value.) × Answer is complete but not entirely correct. Year Depreciation Expense Accumulated Depreciation Carrying Amount At acquisition 7,600 1 $ 1,700 $ 1,700 5,900 2 1,700 → 3,400 4,200 3 1,700 5,100 ✔ 2,500 4 2,500 x 1,700 x 800 1-b. Complete a separate depreciation schedule by using Units-of-production method. (Round your answers to the nearest dollar amount. Make sure that the carrying amount at the end of year 4 is equal to the residual value. Depreciation expense for the last period should be calculated as Carrying value of 3rd year minus residual value.) Answer is complete and correct. Year Depreciation Expense Accumulated Depreciation Carrying Amount At acquisition $ 7,600 1 S 2,448 $ 2,448 5,152 2 1,904 ✔ 4,352 3,248 3 4 1,292 1,158 5,844 1,956 6,800 → 800 1-c. Complete a separate depreciation schedule by using Double-declining-balance method. (Round your answers to the nearest dollar amount. Make sure that the carrying amount at the end of year 4 is equal to the residual value. Depreciation expense for the last period should be calculated as Carrying value of 3rd year minus residual value.) × Answer is complete but not entirely correct. Accumulated Depreciation Year Depreciation Expense Carrying Amount At acquisition $ 7,600 1 $ 234 3,800 1,900 $ 3,800 5,700 3,800 1,900 1,100 x 6,800 x 800 x 4 0 x 6,800 800 Rungano Corporation is a global publisher of magazines, books, and music, as well as video collections, and it is one of the world's leading direct-mail marketers. Many direct-mail marketers use high-speed Didde press equipment to print their advertisements. These presses can cost more than $1 million. Assume that Rungano owns a Didde press acquired at an original cost of $400,000. It is being depreciated on a straight-line basis over a 20-year estimated useful life and has a $50,000 estimated residual value. At the end of 2024, the press had been depreciated for eight years. On April 1, 2025, a decision was made, on the basis of improved maintenance procedures, that a total estimated useful life of 25 years and a residual value of $73,000 would be more realistic. The fiscal year ends December 31. Required: 1-a. Compute the amount of depreciation expense recorded in 2024. Answer is complete and correct. Depreciation expense $17,500 1-b. Compute the carrying amount of the printing press at the end of 2024. Answer is complete and correct. Carrying amount 260,000 2. Compute the amount of depreciation that should be recorded in 2025. × Answer is complete but not entirely correct. Depreciation expense 11,000 3. Prepare the adjusting entry to record depreciation expense at December 31, 2025. (If no entry is required for a transaction/event, select "No journal entry required" In the first account field.) × Answer is complete but not entirely correct. No date General Journal 1 December 31, 20 Depreciation expense Accumulated depreciation Debit Credit 11,000 x 11,000 x

Video Concepts, Inc. (VCI) markets video equipment and film through a vari- ety of retail outlets. Presently, VCI is faced with a decision as to whether it should obtain the distribution rights to an unrelcased film titled Touch of Orange. If this film is distributed by VCI directly to large retailers, VCI's invest- ment in the project would be $150,000. VCI estimates the total market for the film to be 100,000 units. Other data available are as follows: Cost of distribution rights for film $125,000 Label design 5,000 Package design 10,000 Advertising 35,000 Reproduction of copies (per 1,000) 4,000 Manufacture of labels and packaging (per 1,000) 500 Royalties (per 1,000) VC's suggested retail price for the film is $20 per unit. The retailer's margin is 40 percent. 500 a. What is VCI's unit contribution and contribution margin? b. What is the break-even point in units? In dollars? c. What share of the market would the film have to achieve to earn a 20 percent return on VCI's investment…

Amazon.com, Inc. is the world's leading Internet retailer of merchandise and media. Amazon also designs and sells electronic products, such as e-readers. Netflix, Inc. is the world's leading Internet television network. Both companies compete in the digital media and streaming space. However, Netflix is more narrowly focused in the digital streaming business than is Amazon. Sales and average book value of fixed assets information (in millions) are provided for Amazon and Netflix for a recent year as follows: Netflix Amazon Sales $107,006 $6,780 Average book value of fixed assets 19,403 162 a. Compute the fixed asset turnover ratio for each company. Round to one decimal place. b. Which company is more efficient in generating sales from fixed assets? Interpret your results. C.

Elise Carpets Inc. has just acquired a new backing division that produces a rubber backing, which it sells for $3.30 per square yard. Sales are about 1,200,000 square yards per year. Since the Backing Division has a capacity of 2,000,000 square yards per year, top management is thinking that it might be wise for the company's Tufting Division to start purchasing from the newly acquired Backing Divi- sion. The Tufting Division now purchases 600,000 square yards per year from an outside supplier at a price of $3.00 per square yard. The current price is lower than the competitive $3.30 price as a result of the large quantity discounts. The Backing Division's cost per square yard follows. Direct materials.. Direct labor.... Variable overhead.. Fixed overhead (1,200,000 level) Total cost.... $1.80 0.45 0.37 0.15 $2.77 Required a. If both divisions are to be treated as investment centers and their performance evaluated by the ROI formula, what transfer price would you recommend? Why? b. If…