The equipment has the following characteristics:

Assignment Help Accounting Basics
Reference no: EM13866281

The Winsey Company purchased equipment on January 2, 2010, for $700,000. The equipment has the following characteristics:Estimated service life ......... 20 years 100,000 hours950,000 units of outputEstimated residual value ....... $50,000During 2010 and 2011, the company used the machine for 4,500 and 5,500 hours, respectively, and produced 40,000 and 60,000 units, respectively.


Required:Compute the depreciation for 2010 and 2011 under each of the following methods:
1. Straight line

2. Hours worked

3. Units of output

4. Sum of the years'digits

5. Double declining balance

6. 150% declining-balance

7. Compute the company's return on assets (net income divided by average total assets, as discussed in Chapter 6) for each method for 2010 and 2011, assuming that income before depreciation is $100,000. For simplicity, use ending assets, and ignore interest, income taxes, and other assets.

Reference no: EM13866281

Questions Cloud

Dr. another question of the same sort : dr. another question of the same sort 1.      Chemical Formula:            Sr3(PO4)2_________________________ 2.      Dissociation Equation: _3Sr2+(aq)2PO4 -3 (aq)
What are the advantages of a web server? : What are the advantages of a Web server?
Manner should expose auditors to litigation? : Do you think that the inability of auditors to detect a financial statement misstatement due to internal control fraud in a timely manner should expose auditors to litigation? Why or why not?
Summarize white-collar crimes and criminal tools : Summarize white-collar crimes and criminal tools
The equipment has the following characteristics: : The Winsey Company purchased equipment on January 2, 2010, for $700,000. The equipment has the following characteristics:Estimated service life ......... 20 years 100,000 hours950,000 units of outputEstimated residual value ....... $50,000During 2010..
What are the fundaments of sampling : What is the purpose of sampling and how can you avoid bias when selecting samples for human services research?
Why do modern encryption algorithms use keys? : Why do modern encryption algorithms use keys?
What practice(s) typically trigger claw back actions : What practice(s) typically trigger claw back actions by the SEC? Do you think trying to enforce contested claw backs are in shareholders’ best interests? Why or why not?
Uncover fraud under the doctrine? : From an ethical perspective, do you think auditors should be able to escape legal liability for failing to uncover fraud under the doctrine?

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Estimated cost of the product warranty liability

During the first year of operations, a company granted warranties on its producs. The estimated cost of the product warranty liability at the end of the years is $12,750. The product warranty expense of $12,750 should be recorded in the years the ..

  Analyze how involuntary conversions differ from condemnation

Under the authority of the IRS, real property can be seized for nonpayment of taxes. In addition, the local government could confiscate personal property for public use. Analyze how involuntary conversions differ from condemnations and how to dete..

  A company received a note receivable from a customer for a

a company received a note receivable from a customer for a sale. the 9 percent 9-month note was received on may 31 2011

  Possibility of renewal by extension

Short term debt has a few advantages such as the economical advantages of obtaining it at a short notice, the flexibility of being able to meet financial needs, and the possibility of renewal by extension.

  On this date the company concludes that the equipment has a

on january 1 2008 the ramirez company ledger shows equipment 29000 and accumulated depreciation 9000. the depreciation

  Assume cash paid to suppliers for the current year is

assume cash paid to suppliers for the current year is 350000 merchandise inventory increased by 5000 during the year

  Roberts iii corporation is considering an investment in

roberts iii corporation is considering an investment in special-purpose equipment to enable the company to obtain a

  Oxy corporation uses debt preferred stock and common stock

oxy corporation uses debt preferred stock and common stock to raise capital. the firms capital structure targets the

  How the accounting equation is impacted

Transaction analysis results in the development of a journal entry. In the start-up of a business the owner contributes $750,000 of cash. (1) Name the accounts impacted and how using the format account name/debit or credit/dollar amount.

  Company a makes carpets a customer wants to place a special

company a makes carpets. a customer wants to place a special order for 1000 carpets in navy blue with the company logo

  Organizations use a variety of performance measures to

organizations use a variety of performance measures to evaluate managers. central to the idea ofresponsibility

  Pheasant co can further process product b to produce

pheasant co. can further process product b to produce product c. product b is currently selling for 30 per pound and

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd