Problems - Record your answers in the space provided below(points are as indicated) Problem 1 (8 points) On January 1, 2016,Joeâs Moving, Inc. purchased a piece of machinery for use inoperations. The total acquisition cost was $33,000. The machine hasan estimated useful life of three years and a residual value of$3,000. Assume that units produced by the machine will total 16,000during 2016, 23,000 during 2017, and 21,000 during 2018. Use thisinformation to complete the following table. Depreciation ExpenseBook Value at End of Year Method 2016 2017 2018 2016 2017 2018Straight-line Units-of âproduction Double- declining-balance
Problems - Record your answers in the space provided below(points are as indicated) Problem 1 (8 points) On January 1, 2016,Joeâs Moving, Inc. purchased a piece of machinery for use inoperations. The total acquisition cost was $33,000. The machine hasan estimated useful life of three years and a residual value of$3,000. Assume that units produced by the machine will total 16,000during 2016, 23,000 during 2017, and 21,000 during 2018. Use thisinformation to complete the following table. Depreciation ExpenseBook Value at End of Year Method 2016 2017 2018 2016 2017 2018Straight-line Units-of âproduction Double- declining-balance
Related questions
The Thompson Corporation, a manufacturer of steel products, began operations on October 1, 2016. The accounting department of Thompson has started the fixed-asset and depreciation schedule presented below. You have been asked to assist in completing this schedule. In addition to ascertaining that the data already on the schedule are correct, you have obtained the following information from the company's records and personnel (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.):
Depreciation is computed from the first of the month of acquisition to the first of the month of disposition.
Land A and Building A were acquired from a predecessor corporation. Thompson paid $812,500 for the land and building together. At the time of acquisition, the land had a fair value of $72,000 and the building had a fair value of $828,000.
Land B was acquired on October 2, 2016, in exchange for 3,000 newly issued shares of Thompsonâs common stock. At the date of acquisition, the stock had a par value of $5 per share and a fair value of $25 per share. During October 2016, Thompson paid $10,400 to demolish an existing building on this land so it could construct a new building.
Construction of Building B on the newly acquired land began on October 1, 2017. By September 30, 2018, Thompson had paid $210,000 of the estimated total construction costs of $300,000. Estimated completion and occupancy are July 2019.
Certain equipment was donated to the corporation by the city. An independent appraisal of the equipment when donated placed the fair value at $16,000 and the residual value at $2,000.
Machine Aâs total cost of $110,000 includes installation charges of $550 and normal repairs and maintenance of $11,000. Residual value is estimated at $5,500. Machine A was sold on February 1, 2018.
On October 1, 2017, Machine B was acquired with a down payment of $4,000 and the remaining payments to be made in 10 annual installments of $4,000 each beginning October 1, 2018. The prevailing interest rate was 8%.
Required:
Supply the correct amount for each answer box on the schedule. (Round your final answer to nearest whole dollar.)
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