Explanation The cost of machine is $ 63 , 400 , residual value is $ 5 , 300 , and expected to produce units is 290 , 500 . The straight-line method of depreciation is used more than any other method because it tries to distribute the same amount of expense to each period. The formula for calculating the depreciation for the units-of-production method is as follows: Depreciation per unit = Cost − Residual value Total estimated units produced Substitute, $ 63 , 400 for cost, $ 5 , 300 for residual value, and 290 , 500 expected to produce units. Depreciation per unit = 63,400 − 5 , 300 290,500 = 58 , 100 290 , 500 = 0.20 Hence, the depreciation per unit is $ 0.20 . The formula for calculating the depreciation with the straight-line method is as follows: Depreciation expense each years = Unit depreciation × Units produced Substitute, $ 0.20 for unit depreciation, and 95 , 000 units produced. Depreciation expense each years = 0 .20 × 95 ,000 = 19 , 000 Book value is lowered by $ 19 , 000 i.e. 63 , 400 − 19 , 000 = 44 , 400 unit residual value of $ 5 , 300 is reached. The following Table 1 shows the depreciation schedule under units of production method: End of the year Cost of machine Units produced Depreciation expense of the year Accumulated depreciation at the end of the year Book value at end of the year 1 $ 63 , 400 95,000 95 , 000 × 0.20 = $ 19 , 000 $ 19 , 000 63 , 400 − 19 , 000 = $ 44 , 400 2 $ 63 , 400 80,000 80 , 000 × 0

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ISBN: 9781259540554

Author: Jeffrey Slater, Sharon Wittry

Publisher: McGraw-Hill Education

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Chapter 17.2, Problem 5AH

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To prepare: the depreciation schedule by using the given data.

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Ch. 17.1 - Prepare a depreciation schedule using...Ch. 17.1 - If the truck were bought on February 3, what would...Ch. 17.1 - Prepare a depreciation schedule using...Ch. 17.1 - If the truck were bought on February 3, what would...Ch. 17.1 - Prob. 1AH Ch. 17.1 - Find the annual depreciation using the...Ch. 17.1 - Prob. 3AH Ch. 17.1 - Find the first-year depreciation to the nearest...Ch. 17.1 - Prob. 5AH Ch. 17.1 - Prob. 6AH

Ch. 17.1 - Prob. 7AH Ch. 17.1 - Prob. 8AH Ch. 17.1 - Prob. 9AH Ch. 17.1 - Prob. 10AH Ch. 17.1 - Prob. 11AH Ch. 17.2 - From the following facts prepare a depreciation...Ch. 17.2 - From the following facts prepare a depreciation...Ch. 17.2 - Prob. 1AH Ch. 17.2 - Prob. 2AH Ch. 17.2 - Prob. 3AH Ch. 17.2 - Prob. 4AH Ch. 17.2 - Prob. 5AH Ch. 17.2 - Forsmann & Smythe purchased a new machine that...Ch. 17.2 - Young Electrical Company depreciates its vans...Ch. 17.2 - Prob. 8AH Ch. 17.3 - Prob. 1PQ Ch. 17.3 - Prob. 1EPQ Ch. 17.3 - Prob. 1AH Ch. 17.3 - Prob. 2AH Ch. 17.3 - Prob. 3AH Ch. 17.3 - Prob. 4AH Ch. 17.3 - Prob. 5AH Ch. 17.3 - Prob. 6AH Ch. 17.3 - Prob. 7AH Ch. 17.3 - Prob. 8AH Ch. 17.3 - Prob. 9AH Ch. 17.4 - In 2015, Rancho Corporation bought semiconductor...Ch. 17.4 - Prob. 2PQ Ch. 17.4 - Prob. 1EPQ Ch. 17.4 - Prob. 2EPQ Ch. 17.4 - Prob. 1AH Ch. 17.4 - Prob. 2AH Ch. 17.4 - Prob. 3AH Ch. 17.4 - Prob. 4AH Ch. 17.4 - Prob. 5AH Ch. 17.4 - Prob. 6AH Ch. 17.4 - Wolfe Ltd. purchased a supercomputer for $75,000...Ch. 17.4 - Prob. 8AH Ch. 17.4 - Prob. 9AH Ch. 17 - Prob. 1ECP Ch. 17 - From the following facts, complete a depreciation...Ch. 17 - Prob. 3ECP Ch. 17 - Prob. 4ECP Ch. 17 - Prob. 5ECP Ch. 17 - Prob. 6ECP Ch. 17 - From the following facts, complete a depreciation...Ch. 17 - Prob. 8ECP Ch. 17 - Prob. 9ECP Ch. 17 - Prob. 10ECP Ch. 17 - From the following facts, prepare a depreciation...Ch. 17 - Prob. 12ECP Ch. 17 - For the first 2 years, calculate the depreciation...Ch. 17 - For the first 2 years, calculate the depreciation...Ch. 17 - Complete the following table given this...Ch. 17 - Prob. 16ECP Ch. 17 - Prob. 17ECP Ch. 17 - Prob. 18ECP Ch. 17 - Prob. 19ECP Ch. 17 - Prob. 20ECP Ch. 17 - Prob. 21ECP Ch. 17 - Prob. 22ECP Ch. 17 - Prob. 23ECP Ch. 17 - Whole Foods, the world’s leader in natural and...Ch. 17 - Prob. 25ECP Ch. 17 - If corporate headquarters for UPS in Atlanta is...Ch. 17 - Prob. 27ECP Ch. 17 - Prob. 28ECP Ch. 17 - Prob. 1PT Ch. 17 - Prob. 2PT Ch. 17 - Prob. 3PT Ch. 17 - Prob. 4PT Ch. 17 - Prob. 5PT

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