Waterway Corporation purchased a new machine for its assembly process on August 1, 2020. The cost of this machine was $162,900. The company estimated that the machine would have a salvage value of $18,900 at the end of its service life. Its life is estimated at 5 years, and its working hours are estimated at 20,000 hours. Year-end is December 31. Compute the depreciation expense under the following methods. Each of the following should be considered unrelated. (Round depreciation rate per hour to 2 decimal places, e.g. 5.35 for computational purposes. Round your answers to 0 decimal places, e.g. 45,892.) (a) Straight-line depreciation for 2020 $ (b) Activity method for 2020, assuming that machine usage was 800 hours $ (c) Sum-of-the-years'-digits for 2021 $ (d) Double-declining-balance for 2021 $

Waterway Corporation purchased a new machine for its assembly process on August 1, 2020. The cost of this machine was $162,900. The company estimated that the machine would have a salvage value of $18,900 at the end of its service life. Its life is estimated at 5 years, and its working hours are estimated at 20,000 hours. Year-end is December 31. Compute the depreciation expense under the following methods. Each of the following should be considered unrelated. (Round depreciation rate per hour to 2 decimal places, e.g. 5.35 for computational purposes. Round your answers to 0 decimal places, e.g. 45,892.) (a) Straight-line depreciation for 2020 $ (b) Activity method for 2020, assuming that machine usage was 800 hours $ (c) Sum-of-the-years'-digits for 2021 $ (d) Double-declining-balance for 2021 $

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 3CE: A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years....

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(a)	Straight-line depreciation for 2020	$
(b)	Activity method for 2020, assuming that machine usage was 800 hours	$
(c)	Sum-of-the-years'-digits for 2021	$
(d)	Double-declining-balance for 2021	$

Similar questions

At the end of 2020, Magenta Manufacturing Company discovered that construction cost had been capitalized as a cost of the factory building in 2015 when it should have been treated as a cost of production equipment installation costs. As a result of the misclassification, the depreciation through 2018 was understated by 110,000, and depreciation for 2019 was understated by 90,000. What would be the consequences of correcting for the misclassification of the property cost? a. The taxpayer uses the FIFO inventory method, and 25% of goods produced during the period were included in the ending inventory. b. The taxpayer uses the LIFO inventory method, and no new LIFO layer was added during 2019.
A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years. Prepare depreciation schedules reporting the depreciation expense, accumulated depreciation, and book value of the machine for each year under the double-declining-balance and sum-of-the-years-digits methods. For the double-declining-balance method, round the depreciation rate to two decimal places.
Blossom Corporation purchased a new machine for its assembly process on August 1, 2020. The cost of this machine was $172,200. The company estimated that the machine would have a salvage value of $19,200 at the end of its service life. Its life is estimated at 5 years, and its working hours are estimated at 22,500 hours. Year-end is December 31.Compute the depreciation expense under the following methods. Each of the following should be considered unrelated. (Round depreciation rate per hour to 2 decimal places, e.g. 5.35 for computational purposes. Round your answers to 0 decimal places, e.g. 45,892.) (a) Straight-line depreciation for 2020 $enter a dollar amount (b) Activity method for 2020, assuming that machine usage was 850 hours $enter a dollar amount (c) Sum-of-the-years'-digits for 2021 $enter a dollar amount (d) Double-declining-balance for 2021 $enter a dollar amount
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Blue Corporation purchased a new machine for its assembly process on August 1, 2025. The cost of this machine was $169,800. The company estimated that the machine would have a salvage value of $16,800 at the end of its service life. Its life is estimated at 5 years, and its working hours are estimated at 20,000 hours. Year-end is December 31. Compute the depreciation expense under the following methods. Each of the following should be considered unrelated. (Round depreciation rate per hour to 2 decimal places, e.g. 5.35 for computational purposes. Round your answers to O decimal places, e.g. 45,892.) (a) Straight-line depreciation for 2025 (b) (c) (d) Activity method for 2025, assuming that machine usage was 800 hours Sum-of-the-years'-digits for 2026 Double-declining-balance for 2026 GA $ GA GA $ $
Concord Corporation purchased a new machine for its assembly process on August 1, 2025. The cost of this machine was $129,600. The company estimated that the machine would have a salvage value of $12,600 at the end of its service life. Its life is estimated at 5 years, and its working hours are estimated at 20,000 hours. Year-end is December 31. Compute the depreciation expense under the following methods. Each of the following should be considered unrelated. (Round depreciation rate per hour to 2 decimal places, e.g. 5.35 for computational purposes. Round your answers to O decimal places, e.g. 45,892.) (a) Straight-line depreciation for 2025 (b) (c) (d) Activity method for 2025, assuming that machine usage was 800 hours Sum-of-the-years'-digits for 2026 Double-declining-balance for 2026 $ $ LA $ 9,750 4,680 31,200 43,200
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Metlock Corporation purchased a new machine for its assembly process on August 1, 2025. The cost of this machine was $141,600. The company estimated that the machine would have a salvage value of $15,600 at the end of its service life. Its life is estimated at 5 years, and its working hours are estimated at 20,000 hours. Year-end is December 31. Compute the depreciation expense under the following methods. Each of the following should be considered unrelated. (Round A depreciation rate per hour to 2 decimal places, e.g. 5.35 for computational purposes. Round your answers to O decimal places, e.g. 45,892.) (a) (b) (c) Straight-line depreciation for 2025 Activity method for 2025, assuming that machine usage was 850 hours Sum-of-the-years'-digits for 2026 (d) Double-declining-balance for 2026 eTextbook and Media Save for Later Search $ $ $ DELL Attempts: 0 of 3 used D Submit Answer
Metlock Corporation purchased a new machine for its assembly process on August 1, 2025. The cost of this machine was $141,600. The company estimated that the machine would have a salvage value of $15,600 at the end of its service life. It's life is estimated at 5 years, and it's working hours are estimated at 20,000 hours. Year-end is December 31. Could you calculate the depreciation expense for the Sum-of-the-years'-digits for 2026?
Oriole Company purchased a new machine on October 1, 2025, at a cost of $68,880. The company estimated that the machine has a salvage value of $6,240. The machine is expected to be used for 48,880 working hours during its 6-year life. Compute the depreciation expense under the straight-line method for 2025 and 2026, assuming a December 31 year-end. Depreciation expense under the straight-line method $ 2025 2026
Ehrlich Company purchased a new machine on January1, 2022, at a cost of$145,000. The company estimated that the machine will have a salvage value of $25,000.The machine is expected to be used for 20,000 working hours during its 5-year life.InstructionsCompute the depreciation expense under the following methods for the year indicated.(a) Straight-line for 2022 and 2023.(b) Units-of-activity for 2022, assuming machine usage was 5,400 hours.(c) Prepare the journal entry to record depreciation expense for 2022 using each method