1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Len [333]
3 years ago
5

On Jan 1,2016, the Allegheny corporation purchased machinery for115,000$. The estimated service life of the machinery is 10 year

sand the estimated residual value is 5000$. The machine is expectedto produce 220,000 units during its life.
Required; Calculate depreciation 2016-17 using each of thefollowing methods. Round all computations to the nearestdollar.

1. straight line

2. sum of the years digits

3. Double declining balance

4. one hundred fifty percent declining balance.

5. Units of production (units produced in 2016, 30,000; unitsproduced in 2017, 25,000).
Business
1 answer:
Arada [10]3 years ago
6 0

Explanation:

The computation of the depreciation expense for the year 2016 and year 2017 is shown below:

1) Straight-line method:

= (Original cost - residual value) ÷ (useful life)

= ($115,000 - $5,000) ÷ (10 years)

= ($110,000) ÷ (10 years)  

= $11,000

In this method, the depreciation is same for all the remaining useful life

So for 2016 and 2017, the depreciation is $11,000

2. The sum of the years digits is

For 2016

= $110,000 ×  10 ÷ 55

= $20,000

For 2017

= $110,000 × 9 ÷ 55

= $18,000

The 55 is come from

= 10 years + 9 years + 8 years + 7 years + 6 years + 5 years + 4 years + 3 years + 2 years + 1 years

= 55

3.  Double-declining balance method:

First we have to find the depreciation rate which is shown below:

= One ÷ useful life

= 1 ÷ 10

= 10

Now the rate is double So, 20%

In year 2016, the original cost is $115,000, so the depreciation is $23,000 after applying the 20% depreciation rate

And, in year 2017, the ($115,000 - $23,000) × 20% = $18,400

4. Under the one hundred fifty percent declining method

We considered 15 percent

In year 2016, the original cost is $115,000, so the depreciation is $17,250 after applying the 15% depreciation rate

And, in year 2017, the ($115,000 - $17,250) × 15% = $14,662.50

5. Units-of-production method:

= (Original cost - residual value) ÷ (estimated production)  

= ($115,000 - $5,000) ÷ ($220,000 units)

= ($110,000) ÷ ($220,000 units)  

= $0.5 per units

For the year 2016, it is

= Production units in 2016 year × depreciation per unit

= 30,000 × $0.5

= $15,000

Now for the 2017 year, it would be  

= Production units in 2017 year × depreciation per unit

= 25,000 × $0.5

= $12,500

You might be interested in
Horrocks Company granted 180,000 restricted stock awards of its no par common shares to executives, subject to forfeiture if emp
My name is Ann [436]

Answer:

c. 120,000 shares

Explanation:

\frac{No adjustment to the numerator}{180,000-60,000= 120,000}

*Assumed purchase of treasury shares

$600,000

//\frac{10}{60,000}

Note: The proceeds also must be increased (or decreased) by any tax benefits that would be added to (or deducted from) paid-in capital when the eventual tax deduction differs from the amount expense, the "excess tax benefit." Since that occurs when the stock price at vesting differs from the stock price at the grant date, the fact that the market price remained at $10 avoided that issue.

3 0
2 years ago
Pretend you are an employer. you will discuss a promotion and a raise with an employee. What will you say to them?
pychu [463]

Answer:

Good luck with the promotion, here are some ideas for the company!

6 0
3 years ago
The 2017 Annual Report of Tootsie Roll Industries contains the following information. (in millions) December 31, 2017 December 3
a_sh-v [17]

Answer:

a. Asset turnover = Sales/Average total assets

Asset turnover= 515.7/[(930.9+920.1)/2]

Asset turnover = 515.7 / 925.5

Asset turnover = 0.5572123

Asset turnover = 0.557

b. Return on Assets = Net income/Average total assets

Return on Assets= 80.7/[(930.9+920.1)/2]

Return on Assets = 80.7 / 925.5

Return on Assets = 0.08719

Return on Assets= 8.72%

c. Profit Margin = Net income/Sales

Profit Margin = 80.7/515.7

Profit Margin = 15.65%

8 0
3 years ago
Selected transactions from the journal of Metlock Inc. during its first month of operations are presented here:
Akimi4 [234]

Answer:

Metlock, Inc.

T-accounts:

Common Stock

Date     Account Titles       Debit   Credit

Aug. 1   Common Stock   9,000

Cash

Date     Account Titles          Debit   Credit

Aug. 1   Common Stock                    9,000

Aug. 10 Service Revenue     1,400

Aug. 12 Equipment                           1,540

Aug. 31 Accounts receivable 750

Service Revenue

Date     Account Titles       Debit   Credit

Aug. 10 Cash                                  1,400

Aug. 25 Accounts receivable      2,570

Equipment

Date     Account Titles       Debit   Credit

Aug. 12  Cash                     1,540

            Notes Payable    4,060

Accounts Receivable

Date       Account Titles       Debit   Credit

Aug. 25   Service Revenue  2,570

Aug. 31    Cash                                   750

Explanation:

Common stock of $9,000 was posted on the debit side as it appeared first.  This follows the normal order of recording transactions in the journal.  The accounts to be debited are recorded first before the accounts to be credited.  However, this entry appears abnormal.  Cash of $9,000 should have appeared first in the journal before the Common Stock.  Whichever is the correct interpretation, all the journal entries have been posted to the T-accounts accordingly.

6 0
3 years ago
What is your marginal rate of consumption (MPC)? If your income increased $1,000 per month until retirement, how much would your
vivado [14]

Answer:

$400

Explanation:

In the case when the income would be increased by $1,000 per month so the spending on consumption goods would also be increased by 40% here we assume the 40%

So,

= $1,000 × 40%

= $400

Therefore based on the above assumption, the spending on consumption goods would be increased by $400

3 0
3 years ago
Other questions:
  • The intentional dispossession or unauthorized use of the personal property of another is known as:
    5·1 answer
  • Wilma leads a task force charged with restructuring the order-processing system in the organization. The task force is composed
    12·1 answer
  • When inspecting a fire extinguisher:
    5·1 answer
  • Determine the amount of tax liability in the following situations. In all cases, the taxpayer is using the filing status of marr
    14·1 answer
  • According to Hofstede's framework, a culture that scores low on ________ is characterized by individual stability and reputation
    7·1 answer
  • Branch-circuit conductors supplying a single motor compressor shall have an ampacity not less than 125% of either the motor-comp
    6·1 answer
  • Lance Chips granted restricted stock units (RSUs) representing 40 million of its $1 par common shares to executives, subject to
    11·1 answer
  • Business intelligence is best defined as the use of information systems to​ ________. A. screen potential employees for minimum
    15·1 answer
  • Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below.
    5·1 answer
  • One of the disadvantages of investing in real estate is A) investors need expert help. B) pyramiding. C) equity buildup. D) leve
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!