Units-of-Production Method A machine is purchased January 1 at a cost of $60,130. It is expected to produce 136,000 units and have a salvage value of $3,010 at the end of its useful life. Units produced are as follows: Year 1 11,000 Year 2 8,100 Year 3 12,100 Year 4 16,200 Year 5 11,500 Required: Prepare a schedule showing depreciation for each year and the book value at the end of each year using the units-of-production method. Units-of-Production Method Ending Beginning Book Value Depreciation Book Value Annual Year 1. $60,130 2 3 4 5

Assume that an asset costing $72,000 is expected to produce 500,000 units and have a salvage value of $6,000. The first year, 90,000 units are produced; the second year, 82,000 units are produced; the third year, 94,000 units are produced. Using the units-of-production method, complete the following: Year  DepreciationExpense BookValue 0 — $72,000 1 fill in the blank 1 fill in the blank 2 2 fill in the blank 3 fill in the blank 4 3 fill in the blank 5

Depreciation by Units-of-Activity Depreciation A diesel-powered tractor with a cost of $191,060 and estimated residual value of $2,900 is expected to have a useful operating life of 64,000 hours. During November, the tractor was operated 100 hours. Determine the depreciation for the month. Carry out any division to two decimal places.

Straight-Line, Declining-Balance, Sum-Of-The-Years'-Digits, and MACRS Methods A machine is purchased January 1 at a cost of $59,000. It is expected to serve for eight years and have a salvage value of $3,000. Required: 1. Prepare a schedule showing depreciation for each year and the book value at the end of each year using the following methods a.  Straight-line

Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $416,000. The equipment was expected to have a useful life of four years, or 7,200 operating hours, and a residual value of $34,400. The equipment was used for 2,520 hours during Year 1, 1,512 hours in Year 2, 2,016 hours in Year 3, and 1,152 hours in Year 4. Required: 1. Determine the amount of depreciation expense for the four years ending December 31 by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the four years by each method. Round the answer for each year to the nearest whole dollar. Depreciation Expense Year Year 1 Year 2 Year 3 Year 4 Total Straight-Line Method $ Units-of-Activity Method $ $ 2. What method yields the highest depreciation expense for Year 1? Double-Declining- Balance Method 3. What method yields the most depreciation over the four-year life of the…

Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $282,600. The equipment was expected to have a useful life of four years, or 4,800 operating hours, and a residual value of $23,400. The equipment was used for 1,680 hours during Year 1, 1,008 hours in Year 2, 1,344 hours in Year 3, and 768 hours in Year 4. Required: 1.  Determine the amount of depreciation expense for the four years ending December 31 by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the four years by each method. Round the answer for each year to the nearest whole dollar. Depreciation Expense Year Straight-Line Method   Units-of-Activity Method   Double-Declining-Balance Method Year 1 $fill in the blank 1   $fill in the blank 2   $fill in the blank 3   Year 2 $fill in the blank 4   $fill in the blank 5   $fill in the blank 6   Year 3 $fill in the…

Required information [The following information applies to the questions displayed below] On January 1, Year 1, a company purchased equipment for $148,000. The estimated service life of the equipment is 10 years and the estimated residual value is $16,000. The equipment is expected to produce 400.000 units during its life. Required: Calculate depreciation for Year 1 and Year 2 using each of the following methods. 3. Units of production (units produced in Year 1, 48,000; units produced in Year 2, 43,000). Note: Round "Depreciation per unit rate" answers to 2 decimal places. Select formula for Units of Production Depreciation: Calculato Year 1 depreciation expense Depreciation per unit rate Units produced in Year 1 Depreciation in Year 1 Calculate Year 2 depreciation expense: Depreciation per unit rate. Units produced in Year 2 Depreciation in Year 2

Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $479,600. The equipment was expected to have a useful life of four years, or 8,000 operating hours, and a residual value of $39,600. The equipment was used for 2,800 hours during Year 1, 1,680 hours in Year 2, 2,240 hours in Year 3, and 1,280 hours in Year 4. Required: 1. Determine the amount of depreciation expense for the four years ending December 31 by (a) the straight-line method, (b) the units-of- activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the four years by each method. Round the answer for each year to the nearest whole dollar. Depreciation Expense Year Year 1 Year 2 Year 3 Year 4 Total Straight-Line Method Units-of-Activity Method 2. What method yields the highest depreciation expense for Year 1? Double-declining-balance method Double-Declining- Balance Method 3. What method yields the most depreciation over…

Estimating Depreciation Expense and Book ValueEquipment costing $120,000, with a scrap value of $20,000 was purchased on January 1, by Global Communications, Inc. The estimated useful life of the equipment was 4 years and it was expected to generate 80,000 finished units of production. Units actually produced were 14,000 in Year 1 and 20,000 in Year 2. Required Complete the following table.   Depreciation Expense   Net Book Value Depreciation Method Year 1 Year 2   Year 1year-end Year 2year-end Straight-line           Double-declining-balance           Units-of-production           PreviousSave AnswersFinish attempt ...

A machine costing $25,625 with a five-year life and $1,500 residual value was purchased on January 2, Compute depreciation for each of the five years, using the double- declining-balance method. 1. Year 1 2. Year 2 3. Year 3 4. Year 4 5. Year 5