Compute depreciation expense on the machine for the year end

Assignment Help Accounting Basics
Reference no: EM131120317

1. Depreciation for Partial Periods-SL, Act, SYD, and DDB the cost of equipment purchased by Charleston, Inc., on June 1, 2010 is $89,000. It is estimated that the machine will have a $5,000 salvage value at the end of its service life. Its service life is estimated at 7 years; its total working hours are estimated at 42,000 and its total production is estimated at 525,000 units. During 2010 the machine was operated 6,000 hours and produced 55,000 units. During 2011 the machine was operated 5,500 hours and produced 48,000 units. Compute depreciation expense on the machine for the year ending December 31, 2010, and the year ending December 31, 2011, using the following methods.

(a) Straight-line.
(b) Units-of-output.
(c) Working hours.
(d) Sum-of-the-years'-digits.
(e) Declining-balance (twice the straight-line rate).

Reference no: EM131120317

Questions Cloud

What additional information is necessary to make decision : Determine the annual pretax returns the firm would realize from the use of a zero balance system for its payroll account.  What additional information is necessary to make a decision concerning the desirability of establishing such a system?
Determine the net pretax benefit to peterson of using wire : Depository transfer checks cost $0.50 (including postage), and wire transfers cost $10.Assume there are 250 working days per year. Peterson can earn 7 percent before taxes on any funds that are released through more efficient collection techniques. D..
The amount of funds released by the lockbox arrangement : Funds released by the lockbox arrangement could be invested elsewhere in the firm to earn 15 percent before taxes. Determine the following: a. The amount of funds released by the lockbox arrangement b. The annual (pretax) earnings on the released fun..
Determine the annual net pretax benefits jmcc would realize : Any funds released under the decentralized collections system would be used to reduce the firm’s debt, which currently carries an interest rate of 7.5 percent. Using his information, determine the annual net pretax benefits JMCC would realize by impl..
Compute depreciation expense on the machine for the year end : Depreciation for Partial Periods-SL, Act, SYD, and DDB the cost of equipment purchased by Charleston, Inc., on June 1, 2010 is $89,000.
Which of the two lockbox systems should the firm select : Determine the annual net (pretax) benefits to Great Lakes Oil of establishing a lockbox system with the Salt Lake City bank. Which of the two lockbox systems (if any) should the firm select?
What method would you recommend : She asks you to recommend a depreciation method that will allocate less of the company's depreciation expense to the early years and more to later years of the assets' lives. What method would you recommend?
Determine the increase in the firm’s average cash balance : Exman Company performed a study of its billing and collection procedures and found that an average of 8 days elapses between the time when a customer’s payment is received and when the funds become usable by the firm. The firm’s annual sales are $540..

Reviews

Write a Review

Accounting Basics Questions & Answers

  On april 1 2012 prince company assigns 500000 of its

on april 1 2012 prince company assigns 500000 of its accounts receivable to the third national bank as collateral for a

  Uses the average cost method of pricing inventory

Uses the average cost method of pricing inventory.

  Mabel miller is paid monthly for the month of september she

mabel miller is paid monthly. for the month of september she earned a total of 6200. fica tax for social security is

  A method of estimating bad debts expense which involves a

a method of estimating bad debts expense that involves a detailed examination of outstanding accounts and their length

  Fleming company sellsl a product for 50 per unit the fixed

fleming company sellsl a product for 50 per unit. the fixed costs are 525000 and the variable costs are 60 of th

  Formula and the old one are equally effective

A company's sold antacid formula provided relief for 70% of the people who used it. The company's tests a new formula to see if it is better and gets a P-value of 0.27. Is it reasonable to conclude that the new formula and the old one are equally ..

  Income statement of maltbee lawn service

Prepare the income statement of Maltbee Lawn Service for the four months May through August. Prepare the classified balance sheet of Maltbee Lawn Service at August 31.

  Calculate the direct labor efficiency variance input the

whyte inc. uses a standard cost system. labor standards are 2.0 hours per widget at 8.50 per hour. during august whyte

  Determine the cost of the units completed

Determine the cost of the units completed and transferred to finished goods and the ending WIP balance using the weighted average method

  Slick corporation is a small producer of synthetic motor

slick corporation is a small producer of synthetic motor oil. during may the company produced 5000 cases of lubricant.

  Changes in fund balance and a budgetary comparison

Prepare a balance sheet; a statement of revenues, expenditures, and changes in fund balance and a budgetary comparison schedule Prepare closing journalentries.

  Prepare a budgeted income statement for the first quarters

Prepare a budgeted income statement for the first and second quarters of 19B and a budgeted  balance sheet as of June 30, 19B.

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