Robert Parish Corporation purchased a new machine for its assembly process on January 1, 2014. The...
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Robert Parish Corporation purchased a new machine for its assembly process on January 1, 2014. The cost of this machine was $945,000. The company estimated that the machine would have a salvage value of $45,000 at the end of its service life. Its life is estimated at 5 years, and its working hours are estimated at 90,000 hours. Year-end is December 31. Compute the depreciation expense under the following methods and complete the depreciation schedules below. (a) Straight-line depreciation. (b) Activity method, assuming that machine usage was 21,000 hours for 2014; 29,000 hours for 2015; 13,000 hours for 2016; 12,000 hours for 2017; and 15,000 hours for 2018. (c) Sum-of-the-years'-digits. (d) Double-declining-balance. Robert Parish Corporation purchased a new machine for its assembly process on January 1, 2014. The cost of this machine was $945,000. The company estimated that the machine would have a salvage value of $45,000 at the end of its service life. Its life is estimated at 5 years, and its working hours are estimated at 90,000 hours. Year-end is December 31. Compute the depreciation expense under the following methods and complete the depreciation schedules below. (a) Straight-line depreciation. (b) Activity method, assuming that machine usage was 21,000 hours for 2014; 29,000 hours for 2015; 13,000 hours for 2016; 12,000 hours for 2017; and 15,000 hours for 2018. (c) Sum-of-the-years'-digits. (d) Double-declining-balance.
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Related Book For
Intermediate Accounting
ISBN: 9781119790976
18th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
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