3. Which of the following are based on estimates?:
? useful life
? salvage value
? units of production
? depreciable cost
? acquisition cost
? depreciation expense
? accumulated depreciation
3. Which of the following are based on estimates?:
? useful life
? salvage value
? units of production
? depreciable cost
? acquisition cost
? depreciation expense
? accumulated depreciation
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Related questions
A machine costing $211,600 with a four-year life and anestimated $16,000 salvage value is installed in Luther Companyâsfactory on January 1. The factory manager estimates the machinewill produce 489,000 units of product during its life. It actuallyproduces the following units: year 1, 123,300; year 2, 123,800;year 3, 121,400; and year 4, 120,500. |
1. Straight line depreciation
2. Units of production
3 . DDB depreciation for the period
|
Using theâ double-declining balanceâ method, calculate theannual depreciation expense that will be recorded each year for anasset that cost
$18,000â,
has a useful life of fourâ years, and has an estimated salvagevalue of
$3,600.
Explain what accounting issueâ arises, ifâ any, in the third andfourth years.
Determine the depreciable cost.
Cost | -. | Salvage value | = | Depreciable cost | ||
- | = |
Complete the depreciation schedule using theâ double-decliningbalance method. â(Complete all inputâ boxes.)
Book | Annual | Accumulated | ||
Year | Rate | value | depreciation | depreciation |
1 |
2 |
3 |
4 |
Explain what accounting issueâ arises, ifâ any, in the third andfourth years.
A machine costing $257,500 with a four-year life and anestimated $20,000 salvage value is installed in Luther Companyâsfactory on January 1. The factory manager estimates the machinewill produce 475,000 units of product during its life. It actuallyproduces the following units: year 1, 220,000; year 2, 124,600;year 3, 121,800; and year 4, 15,200. The total number of unitsproduced by the end of year 4 exceeds the original estimateâthisdifference was not predicted. (The machine must not be depreciatedbelow its estimated salvage value.) |
Required: |
Compute depreciation for eachyear (and total depreciation of all years combined) for the machineunder each depreciation method. (Round your per unitdepreciation to 2 decimal places.) |
YEAR | DEPRECIATION EXPENSE |
---|---|
1. | |
2. | |
3. | |
4. | |
5. | |
TOTAL |
YEAR | DEPRECIABLE UNITS | DEPRECIATION PER UNIT | DEPRECIATION EXPENSE |
1. | |||
2. | |||
3. | |||
4. | |||
5. | |||
TOTAL |
YEAR | BEGINNING OF PERIOD BOOK VALUE | DEPRECIATION RATE | DEPRECIATION EXPENSE | ACCUMULATED DEPRECIATION | BOOK VALUE |
1. | |||||
2. | |||||
3. | |||||
4. | |||||
5. | |||||
TOTAL |