On January 1, 2024, Bloom Company purchased Machine #729. The following information relating to Machine #729...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On January 1, 2024, Bloom Company purchased Machine #729. The following information relating to Machine #729 was gathered at the end of January: Price Freight-in Preparation & Installation Costs Labor costs during regular production operations $125,000 $1,040 $4,280 $18,650 It is estimated that Machine #729 will have a useful life of 4 years, a salvage value of $5,140, production of 880,000 units, and working hours of 44,000 hours. Below is the information relating to Machine #729's production and usage for each year. Units Produced Hours Used Year 2024: Year 2025: 88,000 8,000 76,000 6,800 Year 2026: 80,000 7,600 Year 2027: 68,000 6,200 Required: Assuming a December 31 year-end, compute the depreciation expense for the Year 2024 and the Year 2025 for Machine #729 for each of the following depreciation methods. 2024 Depreciation Expense: 2025 Depreciation Expense: Method: Straight-line 31300 Sum-of-the-years'-digits 50080 Double-declining-balance 75037.50 31300 37560 49922.50 Required: Answer the questions below based on the above calculations. g. What is the accumulated depreciation and the carrying amount at the end of Year 2027 under the Double-declining-balance method? type your answer... h. Which method will result in the highest net income in the Year 2025? type your answer... Required: Answer the questions below based on the Activity Method for depreciation. i. Using the Units-of-production method, what is the depreciation expense for the Year 2026? type your answer... j. Using the working-hours method, what is the depreciation expense for the Year 2027? type your answer... On January 1, 2024, Bloom Company purchased Machine #729. The following information relating to Machine #729 was gathered at the end of January: Price Freight-in Preparation & Installation Costs Labor costs during regular production operations $125,000 $1,040 $4,280 $18,650 It is estimated that Machine #729 will have a useful life of 4 years, a salvage value of $5,140, production of 880,000 units, and working hours of 44,000 hours. Below is the information relating to Machine #729's production and usage for each year. Units Produced Hours Used Year 2024: Year 2025: 88,000 8,000 76,000 6,800 Year 2026: 80,000 7,600 Year 2027: 68,000 6,200 Required: Assuming a December 31 year-end, compute the depreciation expense for the Year 2024 and the Year 2025 for Machine #729 for each of the following depreciation methods. 2024 Depreciation Expense: 2025 Depreciation Expense: Method: Straight-line 31300 Sum-of-the-years'-digits 50080 Double-declining-balance 75037.50 31300 37560 49922.50 Required: Answer the questions below based on the above calculations. g. What is the accumulated depreciation and the carrying amount at the end of Year 2027 under the Double-declining-balance method? type your answer... h. Which method will result in the highest net income in the Year 2025? type your answer... Required: Answer the questions below based on the Activity Method for depreciation. i. Using the Units-of-production method, what is the depreciation expense for the Year 2026? type your answer... j. Using the working-hours method, what is the depreciation expense for the Year 2027? type your answer...
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
9 Book rences You are given the following information for Lightning Power Company. Assume the company's tax rate is 25 percent. Debt: Common stock: Preferred stock: Market: 10,000 5.9 percent coupon...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Why is it helpful to understand leadership as a theory while managing a healthcare-orientated organization? Justify your stance using two examples. What factors do you think should appear in a model...
-
With reference to Definition 4.4, show that 0 = 1 and that 1 = 0 for any random variable for which E(X) exists. Definition 4.4 The rth moment about the mean of a random variable X, denoted by r ,...
-
Thanh Nguyen started a business, Nguyen Import Services, on August 1, 2017. After consulting with a friend who had taken introductory accounting, Thanh created a chart of accounts for the business as...
-
Is leadership necessarily moral? Was Hitler a leader even though he was evil? Why or why not?
-
As a hedge fund specializing in locating attractively priced fixed-income instruments, Millennium Cerberus Fund is now reviewing its overall bond allocation strategy following the recent "liquidity...
-
Which of the following statements is true? O The first step in activity-based costing is to assign overhead costs to products using cost drivers ABC usually results in less appropriate management...
-
In 1994, the Mexican peso declined against the U.S. dollar during the so-called "Tequila Crisis." What exacerbating factor did Mexico's "Tequila Crisis" have in common with the Argentine crisis of...
-
What is the angle of rotational symmetry in methane? How many axis of 3-fold symmetry are there in methane? If you bisect the Hi-C-H2 angle and rotate to find a plane of symmetry, what is the angle...
-
Brand/Background :Roundnet is a net sport-inspired primarily by concepts from volleyball. It was originally created in 1989 by Jeff Knurek although the equipment he created for the game became...
-
Belton, Inc. had the following transactions in 2024, its first year of operations: Issued 33,000 shares of common stock. Stock has par value of $1.00 per share and was issued at $19.00 per share....
-
1. What it means to decompose the income gap in an economic sense. Use examples about decomposing the income gap between same-sex couples and different-sex couples. Specify the factors the income gap...
-
Pharoah Corp.'s sales slumped badly in 2022. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 595,500 units of...
-
Explain the below in detail:- What is the employer's liability under Torts? What is an employer's liability in a workplace?
-
a. Why does the Wi-Fi Alliance release compatibility testing profiles in waves instead of combining the entire standards features initially? 27a1.) An 802.11ac Wi-Fi compatibility testing profile...
-
Paddle Petroleum has the following account balances at 12/31/15: The above properties are abandoned in 2016. Record the abandonment entry. Lease A: unproved property Lease B: proved property... Wells...
-
Aaron Energy Corporation has the following account balances at 12/31/15: At 12/31/15, Lease A is considered to be 40% impaired. Aaron Energys estimated abandonment rate of insignificant unproved...
-
Dwight Oil and Gas Company has the following information at 12/31/15. Production in 2015: Capitalized costs, plus future development costs..... Accumulated DD&A.. Proved reserves Oil. Gas. $2,000,000...
Study smarter with the SolutionInn App