unset Unlimited bought a machine for $71,000 cash. The estimated useful life was five years and the estimated residual value was $8,000. Assume that the estimated useful life in productive units is 159,000. Units actually produced were 42,400 in year 1 and 47,700 in year 2.   Required: 1. Determine the appropriate amounts to complete the following schedule. 2-a. Which method would result in the lowest net income for year 1? 2-b. Which method would result in the lowest net income for year 2? 3. Which method would result in the lowest fixed asset turnover ratio for year 1?

Q2: The costs occurred in March has been allocated to each cost center. The cost of machines is 3.950.000 TL and the accumulated depreciation of machines is 1.927.700 TL. The useful life of machine is 10 years and Declining Balance Method is chosen. The depreciation cost of machines will be allocated on the base of machine hours. The allocated cost of service cost centers will be re-distributed according to Step Ladder Method. First apportioned center will be chosen according to total cost. Infirmary and Cafeteria will be allocated on the base of number of workers, Generator on the base of kwh and Maintenance and Repair on the base of maintenance and repoir hour. The allocation keys of each item are as follows: Cost Production Departments Service Departments Centers/Costs Pasta Cutting Drying Maintenance Total Gristmill Generator Infirmary Cafeteria & Repair Press 17.000 Cost Direct Material 25.000 18.000 60.000 Direct Labor 36.000 27.000 17.000 80.000 Factory Overhead Indirect 3.000…

An asset for drilling was purchased and placed in service by a petroleum production company. Its cost basis is  $60,000 and it has an estimated MV of $12,000 at the end of an estimated useful life of 14 years. Compute the  accumulated depreciation in the third year and the BV at the end of 5th year of life by each of these methods at the rate of 9%:  b. The DB Method  (Declining Balance Method)- Provide the complete manual solution (not excel or tables) and cash flow diagram

Jim Company bought a machine for $54,260 with an estimated life of 5 years. The residual value of the machine is $7,100. This machine is expected to produce 131,000 units. In year 1, it produced 24,500 units, and in year 2, 43,500 units. Assuming the units-of-production method, calculate the first 2 years’ depreciation. Year 1: Year 2:

Accounting Question

Quantum Electronic Services paid P = $40,000 for its networked computer system. Both tax and book depreciation accounts are maintained. The annual tax depreciation rate is based on the previous year’s book value (BV), while the book depreciation rate is based on the original first cost (P). Use the rates listed to plot annual depreciation and book values for each method. Develop the graphs using hand calculations or a spreadsheet, as directed by your instructor.