Sun Company (Sun) is engaged in manufacturing and selling of kettle and its financial year- end...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Sun Company ("Sun") is engaged in manufacturing and selling of kettle and its financial year- end date is 31 December. On 1 June 2021, Sun purchased a machine for manufacturing of kettle for $600,000 cash. The machine was expected to be used for 5 years. The residual value was expected to be $50,000. The machine is expected to operate for 11,000 hours in its useful life. The machine operated for 1000 hours in 2021 and 2500 hours in 2022. Required: Calculate the annual depreciation expense of the above machine for the financial year 2021 and 2022 respectively using the following methods: (i) straight-line method (with half-year convention) (ii) double-declining balance method (with half-year convention) (iii) units of output method Sun Company ("Sun") is engaged in manufacturing and selling of kettle and its financial year- end date is 31 December. On 1 June 2021, Sun purchased a machine for manufacturing of kettle for $600,000 cash. The machine was expected to be used for 5 years. The residual value was expected to be $50,000. The machine is expected to operate for 11,000 hours in its useful life. The machine operated for 1000 hours in 2021 and 2500 hours in 2022. Required: Calculate the annual depreciation expense of the above machine for the financial year 2021 and 2022 respectively using the following methods: (i) straight-line method (with half-year convention) (ii) double-declining balance method (with half-year convention) (iii) units of output method
Expert Answer:
Answer rating: 100% (QA)
ANSWER I Straight line method of depreciation Formula 202... View the full answer
Related Book For
Advanced Financial Accounting
ISBN: 978-0137030385
6th edition
Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay
Posted Date:
Students also viewed these accounting questions
-
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...
-
Read the case study and answer the question below with a one page response. What does a SWOT analysis reveal about the overall attractiveness of Under Armours situation? Founded in 1996 by former...
-
The head office of North Central Ltd. has operated in the western provinces for almost 50 years. North Central uses ASPE. In 2001, new offices were constructed on the same site at a cost of $9.5...
-
THE iterative software development method. Just read the case thoroughly and answer the below-mentioned 3 questions. Here are the three questions to be answered: 1. What are the two choices Lalonde...
-
A 95 kg solid sphere with a 15 cm radius is suspended by a vertical wire. A torque of 0.20N m is required to rotate the sphere through an angle of 0.85 rad and then maintain that orientation. What...
-
In your audit of the Learned Corporation you request a management "rep" letter. You are particularly interested in management's representations on 1. Irregularities involving management or employees....
-
This (partial and adapted) advertisement appeared in The Wall Street Journal. A subordinated debenture gives rights to the bondholder that are more restricted than the rights of other bondholders....
-
Bishop Company has provided the estimated data that appear in rows 4 to 8 of the following spreadsheet: Required Using the spreadsheet tips that follow, construct a spreadsheet that allows you to...
-
In Exercises 1-6, find the vertex, focus, directrix, and focal width of the parabola. 1. x = 6y 2. y=-8x 3. (y-2) = 4(x+3) 4. (x+4) = 6(y + 1) 5. 3x=-4y 6. 5y = 16x In Exercises 1130, find an...
-
18. Add the Office field to the Filters area of the Pivot Table. Filter the table so that only organizations with private offices are visible.
-
All scheduled presentations and events will take place in the Main Conference Room, 1st Floor. Time February 25 Registration Guide to the Job Fair Rsum Writing Lunch (refreshments served) The...
-
Why is it difficult to identify manufacturing overheads with products manufactured? Also, state the difference between the manufacturing overheads control account and manufacturing overhead applied...
-
Assume that Express Oil Company, a US company, is involved in petroleum operations in Thailand. Express Oil Company has a 40% WI, while the Local Oil Company has a 60% WI. Annual gross production is...
-
a. Tamarac Oil Corporation drills an exploratory well during 2018 that finds oil, but not in commercially producible quantities at current oil prices. Since proved reserves are not found, Tamarac...
-
Marvel Oil Company enters into a concession agreement with the British government. Marvel Oil pays the government a $10,000,000 (US) signing bonus and agrees to pay the government royalties of 8% of...
-
Federal Oil Company enters into a concession agreement with the British government. Federal pays the government a $12,000,000 (US) signing bonus and agrees to pay the government royalties of 10% of...
-
What is removed during each of the three stages of wastewater treatment: primary, secondary, and tertiary? During which state would you expect items to be recovered that were accidentally flushed,...
-
On April 1, 20X5, Marsh Ltd. purchased 25% of the outstanding common shares of King Corp. for $ 6,000,000. The carrying value of Kings net assets was $ 16,000,000, an amount that also approximated...
-
Ermine Oil Limited (Ermine) is a fully integrated Canadian oil company. Ermine commenced operations as a petroleum exploration company and was very successful in its oil field discoveries. To attain...
-
Are consolidated statements required after one corporation directly acquires the net assets of another corporation?
-
Describe the process of valuing the entrepreneurs ownership interest in a two-stage investment. Refer to Tables 13.10 and 13.13. Data from table 13.10 Data from table 13.13 Market potential...
-
Euro Exchange Rates. The exchange rate that we consider is the amount of euros that one can purchase for one U.S. dollar. We have \(T=699\) daily observations from the period April 1, 2005, through...
-
Evaluate the current yield curve level and structure using the following screens: a. YCRV or GC to access yield curves. b. FWCV to determine implied forward rates. c. USoo03M, USoo06M, USoo09M, and...
Study smarter with the SolutionInn App