Question: Please show how to do it, not just the answer please! Reporting and Analyzing Long Lived Assets - Depreciation (approx. 15 minutes) Chili Mealy Ltd.

 Please show how to do it, not just the answer please!

Please show how to do it, not just the answer please!

Reporting and Analyzing Long Lived Assets - Depreciation (approx. 15 minutes) Chili Mealy Ltd. purchased a packaging machinery for their ready-made meals on January 2, 2018, at a cost of $325,000. The new equipment has an estimated residual value of $5,000 and an estimated useful life of either four years or 80,000 units, Assume the following estimated number of units packaged each year: 2018: 15,800 units 2019: 22,400 units 2020:22,800 units 2021: 18,000 units 2022: 1,000 units. Chili Mealy's uses the unit of production method of depreciation. Their business year ends on December 31. Instructions: Blank #1) Which amount will be depreciated in the second year (2019)? Blank #2) What is the carrying amount of this packaging equipment after the second year (2019)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!