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MrRa [10]
3 years ago
14

At the beginning of 2017, your company buys a $34,000 piece of equipment that it expects to use for 4 years. The equipment has a

n estimated residual value of $2,000. The company expects to produce a total of 200,000 units. Actual production is as follows: 41,000 units in 2017, 49,000 units in 2018, 45,000 units in 2019, and 65,000 units in 2020.
Required:
a. Determine the depreciable cost.
b. Calculate the depreciation expense per year under the straight-line method.
c. Use the straight-line method to prepare a depreciation schedule.
d. Calculate the depreciation rate per unit under the units-of-production method.
e. Use the units-of-production method to prepare a depreciation schedule.
Business
1 answer:
Elodia [21]3 years ago
4 0

Answer:

32,000

8000

see below

.16

see below

Explanation:

I'm not really sure what the schedule is supposed to look like (im not good at accounting) exactly but i whipped up something real quick in excel and if you have any questions ask

the depreciable cost is just cost-salvage (the amount that's going to be depreciated) so for us its 34000-2000 or 32,000

the depreciation expense is just the depreciable cost divided by the useful live (32,000/4)=8000

see my attempt at a depreciation schedule below

The deprecation rate per unit is the depreciable cost divided by the total units

32000/200000= .16

and you can see below my attempt at the units of production schedule

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Answer:

The answer is: $113,000

Explanation:

By 2020, Phillips Company had already amortized $22,000 of the patent expenses (2 years x [10% x ($100,000 + $10,000)]). Since it lost its patent defense in 2020, it will now have to write off $113,000 ($88,000 pending amortization + $25,000 in legal fees) for the adjustment of its 2018 income.

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3 years ago
When the effective-interest method of bond discount amortization is used,
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Answer: C. interest expense will not be a constant dollar amount over the life of the bond.

Explanation:

When a bond is sold at a discount, the discount will have to be amortized over the life of the bond to ensure that it reaches par at maturity.

As a result, the interest expense will be based on a larger figure every year which would mean that it would have to be larger each time. t will therefore not be a constant dollar amount over the life of the bond.

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Use the information in the adjusted trial balance presented below to calculate current assets for Taron Company: Account Title D
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Answer:

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The current assets includes cash, stock, account receivable, etc

Fixed assets include plant & machinery, land, equipment, furniture & fittings, etc.

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Answer:

D) normative control

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WIP- Canning $8,020

      To Factory labor $16,760

(Being assigned of factory labor to production is recorded)

WIP-cooking Dr $32,760

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