Heist Company purchased a machine on January 2, 2013, and uses the 150%-declining-balance depreciation method. The machine
Question:
Heist Company purchased a machine on January 2, 2013, and uses the 150%-declining-balance depreciation method. The machine has an expected life of 10 years and an expected residual value of $5,000. The following costs relate to the acquisition and use of the machine during the first year of its operations:
Required:
1. Compute the depreciation expense for 2013 and 2014.
2. Next Level What is the effect on the financial statements if the company used the straight-line method instead of the 150%-declining-balance method?
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Transcribed Image Text:
Invoice price Discounts available and taken Freight Installation s 1,100 750 250 15,000 $50,000 Testing 1,000 700 900 Normal spoilage of materials during the year Abnormal spoilage of materials during the year Wages of machine operator
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (12 reviews)
1 Straightline rate 110 10 Depreciation Cost x 15 x 10 Cost 50000 invoice price 100...View the full answer
Answered By
Ashington Waweru
I am a lecturer, research writer and also a qualified financial analyst and accountant. I am qualified and articulate in many disciplines including English, Accounting, Finance, Quantitative spreadsheet analysis, Economics, and Statistics. I am an expert with sixteen years of experience in online industry-related work. I have a master's in business administration and a bachelor’s degree in education, accounting, and economics options.
I am a writer and proofreading expert with sixteen years of experience in online writing, proofreading, and text editing. I have vast knowledge and experience in writing techniques and styles such as APA, ASA, MLA, Chicago, Turabian, IEEE, and many others.
I am also an online blogger and research writer with sixteen years of writing and proofreading articles and reports. I have written many scripts and articles for blogs, and I also specialize in search engine
I have sixteen years of experience in Excel data entry, Excel data analysis, R-studio quantitative analysis, SPSS quantitative analysis, research writing, and proofreading articles and reports. I will deliver the highest quality online and offline Excel, R, SPSS, and other spreadsheet solutions within your operational deadlines. I have also compiled many original Excel quantitative and text spreadsheets which solve client’s problems in my research writing career.
I have extensive enterprise resource planning accounting, financial modeling, financial reporting, and company analysis: customer relationship management, enterprise resource planning, financial accounting projects, and corporate finance.
I am articulate in psychology, engineering, nursing, counseling, project management, accounting, finance, quantitative spreadsheet analysis, statistical and economic analysis, among many other industry fields and academic disciplines. I work to solve problems and provide accurate and credible solutions and research reports in all industries in the global economy.
I have taught and conducted masters and Ph.D. thesis research for specialists in Quantitative finance, Financial Accounting, Actuarial science, Macroeconomics, Microeconomics, Risk Management, Managerial Economics, Engineering Economics, Financial economics, Taxation and many other disciplines including water engineering, psychology, e-commerce, mechanical engineering, leadership and many others.
I have developed many courses on online websites like Teachable and Thinkific. I also developed an accounting reporting automation software project for Utafiti sacco located at ILRI Uthiru Kenya when I was working there in year 2001.
I am a mature, self-motivated worker who delivers high-quality, on-time reports which solve client’s problems accurately.
I have written many academic and professional industry research papers and tutored many clients from college to university undergraduate, master's and Ph.D. students, and corporate professionals. I anticipate your hiring me.
I know I will deliver the highest quality work you will find anywhere to award me your project work. Please note that I am looking for a long-term work relationship with you. I look forward to you delivering the best service to you.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1111822361
1st edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Question Posted:
Students also viewed these Cost Accounting questions
-
Elizabeth Ashley Company purchased a machine on January 2, 2008, for $600,000. The machine has an estimated useful life of 5 years and a salvage value of $100,000. Depreciation was computed by the...
-
The Lord Company purchased a machine on January 2, 2010, for $70,000. The machine had an expected residual value of $10,000, an expected life of eight years or 24,000 hours, and a capacity to produce...
-
The Kam Company purchased a machine on January 2, 2010, for $20,000. The machine had an expected life of eight years and a residual value of $300. The double-declining-balance method of depreciation...
-
A simple beam AB of span length L = 24ft is subjected to two wheel loads acting at distance = 5 ft apart (see figure). Each wheel transmits a load P = 3.0 k, and the carriage may occupy any position...
-
The following accounts appear in an adjusted trial balance of Fastback Consulting. Indicate whether each account would be reported in the (a) Current asset; (b) Property, plant, and equipment; (c)...
-
Conroy Consulting Corporation (CCC) has been growing at a rate of 30% per year in recent years. This same nonconstant growth rate is expected to last for another 2 years (g0,1 = g1,2 = 30%). a. If D0...
-
Find the power spectral density of a doubly stochastic Poisson impulse process having a rate process \(\Lambda(t)\) described by \[ \Lambda(t)=\lambda_{0}[1+\cos (2 \pi \bar{v} t+\Phi)] \] where...
-
Narisho Supply is in the process of preparing the budget for the first quarter of 2011. The following projections for unit sales have been made: Each finished unit requires three direct materials: 4...
-
The following table show a mass diagram ordinates of a highway construction project. If the free haul distance is 600 ft and overhaul cost is $15 per station yard; a. Draw the mass diagram. Use the...
-
The data points in a sample of size 9 are 34, 51, 40, 38, 47, 50, 52, 44, 37. a. If you can take the deviations of these data from any number you select, and you want to minimize the sum of the...
-
Lurch Company's December 31, 2012, balance sheet follows: During 2013, the following transactions occurred: 1. To avoid paying monthly rent of $5,000 on existing plant facilities, the company decided...
-
Kam Company purchased a machine on January 2, 2013, for $20,000. The machine had an expected life of 8 years and a residual value of $300. The double-declining-balance method of depreciation is used....
-
The kinetic energy of a body that rotates about its centroidal axis is \(100 \mathrm{~J}\). The centroidal mass moment of inertia is \(0.03 \mathrm{~kg} \cdot \mathrm{m}^{2}\). Calculate the angular...
-
The Retail Store is PET SMART 12. Describe the atmospherics that you believe they are following. Stimulate perceptual and emotional responses. Describe three (3) elements that you find appealing....
-
You have just taken a new position as a trainee electronics technician at a small company that makes a variety of electrical and electronic products. Your Supervisor has given you some introductory...
-
XII. Insufficient Funds A. What is that? B. What does the bank do? C. How do you handle this in QBO? 1. Create two service items: Describe why we use these? a) Bounced Check Amount - (1) What income...
-
Consider the following data on traded coupon bond issues and fill the gaps assuming an arbitrage-free market. The face value of each bond is 100. Time to maturity Price Annual coupon YTM Spot rate...
-
1) Complete the income projection in columns I and J, using SUMPRODUCT. 2) Create appropriate range names for the cells: C16, D16, E16, C22, D22, E22. 3) Create four scenarios, using the scenario...
-
Todays task is to review the first stage of budget preparation in a major hospital dealing with a wide range of medical conditions, including accident and emergency services. (There are indications...
-
Prove that the mean heat capacities C P H and C P S are inherently positive, whether T > T 0 or T < T 0 . Explain why they are well defined for T = T 0 .
-
On January 1, 2016, Somerville Corporation sold a used truck to Cornelius Company and LO 13.8 accepted a $28,000 non-interest-beating note due January 1, 2019. Somerville carried the truck on its...
-
On October 1, 2015, Jenkins Corporation bought bonds with a face value of $200,000 for $199,175, which included accrued interest. The bonds are due December 31, 2017, and carry' a face rate of...
-
On January 1, 2016, Mark Corporation purchased bonds with a face value of $500,000 for $475,413.60. The bonds are due December 31, 2018, carry' a 10% stated rate, and were purchased to yield 12%....
-
Superior Micro Products uses the weighted - average method in its process costing system. Data for the Assembly Department for May appear below: Materials Labor Overhead Work in process, May 1 $ 1 9...
-
Vista Distributors purchases inventory in crates of merchandise. Assume the company began July with an inventory of 30 units that cost $300 each. During the month, the company purchased and sold...
-
Blue Company changed depreciation methods in 2025 from double-declining balance to straight-line. Depreciation prior to 2025 under double-declining-balance was 592,400, whereas straight-line...
Study smarter with the SolutionInn App