Troy Ltd purchased a new machine on 1 September 2019 at a cost of $196,900 (excluding...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Troy Ltd purchased a new machine on 1 September 2019 at a cost of $196,900 (excluding GST). The entity estimated that the machine has a residual value of $28,400 (excluding GST). The machine is expected to be used for 34,000 working hours during its 10 year life. Assume a 31 December year-end. Required Please fill in the blanks below. Give each answer to 2 decimal places (e.g. 27.54). (1 mark per correct answer) (a) The depreciation expense using the straight-line method for 2019 was $ 4212.5 (b) The depreciation expense using the diminishing-balance method and a depreciation rate of 25% for 2019 was $ 12306.25 (c) The depreciation expense using the units-of-production method for 2019, assuming the machine usage was 1,800 hours, was $ 8920.59 (d) On 31 December 2020 the company scrapped a delivery truck for $0 that was purchased on 1 January 2016 for $24,750 cash (including GST of 10%) and was depreciated on a straight line basis with a useful life of 7 years and a residual value of $2,250 (excluding GST). The scrapping of the truck resulted in a profit/loss on disposal of $ -8035.71 (If your answer is a loss, please include a negative sign at the front of this times. answer). (e) Troy Ltd has extracted the following information from: Statement of Financial Performance for the year ended 31 December 2021: net sales $1,610,000, depreciation expense $68,000 and profit $71,000. Statement of Financial Position for the year ended 31 December 2021: total assets at the beginning of the year $653,000, total assets at the end of the year $624,000, PPE (cost) at the beginning of the year of $377,000, and $357,000 at the end of the year and accumulated depreciation at year end of $135,850. The average useful life of Troy Ltd's PPE assets for 2021 was The average age of Troy Ltd's PPE assets for 2021 was The asset turnover ratio of Troy Ltd for 2021 was 2.52 years. and for 2020 was $ 16850 years. and for 2020 was $46148.44 Troy Ltd purchased a new machine on 1 September 2019 at a cost of $196,900 (excluding GST). The entity estimated that the machine has a residual value of $28,400 (excluding GST). The machine is expected to be used for 34,000 working hours during its 10 year life. Assume a 31 December year-end. Required Please fill in the blanks below. Give each answer to 2 decimal places (e.g. 27.54). (1 mark per correct answer) (a) The depreciation expense using the straight-line method for 2019 was $ 4212.5 (b) The depreciation expense using the diminishing-balance method and a depreciation rate of 25% for 2019 was $ 12306.25 (c) The depreciation expense using the units-of-production method for 2019, assuming the machine usage was 1,800 hours, was $ 8920.59 (d) On 31 December 2020 the company scrapped a delivery truck for $0 that was purchased on 1 January 2016 for $24,750 cash (including GST of 10%) and was depreciated on a straight line basis with a useful life of 7 years and a residual value of $2,250 (excluding GST). The scrapping of the truck resulted in a profit/loss on disposal of $ -8035.71 (If your answer is a loss, please include a negative sign at the front of this times. answer). (e) Troy Ltd has extracted the following information from: Statement of Financial Performance for the year ended 31 December 2021: net sales $1,610,000, depreciation expense $68,000 and profit $71,000. Statement of Financial Position for the year ended 31 December 2021: total assets at the beginning of the year $653,000, total assets at the end of the year $624,000, PPE (cost) at the beginning of the year of $377,000, and $357,000 at the end of the year and accumulated depreciation at year end of $135,850. The average useful life of Troy Ltd's PPE assets for 2021 was The average age of Troy Ltd's PPE assets for 2021 was The asset turnover ratio of Troy Ltd for 2021 was 2.52 years. and for 2020 was $ 16850 years. and for 2020 was $46148.44
Expert Answer:
Answer rating: 100% (QA)
a The depreciation expense using Straight line method for 2019 was 561667 and for 2020 was 16850 Explanation Given Machine purchased on 1 September 20... View the full answer
Related Book For
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
Students also viewed these accounting questions
-
The following questions are adapted from a variety of sources including questions developed by the AICPA Board of Examiners and those used in the Kaplan CPA Review Course to study property, plant,...
-
Tops Ltd purchased a new machine on 1 October 2015 at a cost of $228,000. The entity estimated that the machine has a residual value of $28,000. The machine is expected to be used 40,000 working...
-
Ivanhoe Ltd. purchased a new machine on April 4, 2017, at a cost of $188,000. The company estimated that the machine would have a residual value of $18,000. The machine is expected to be used for...
-
What does the following code fragment print? int[] a = { 1, 2, 3 }; int[] b = { 1, 2, 3 }; System.out.println(a == b);
-
At the beginning of 2015, Artichoke Academy reported a balance in common stock of $ 150,000 and a balance in retained earnings of $ 50,000. During the year, the company issued additional shares of...
-
Give an overview of process improvement.
-
Determine the slope at \(A\). The A992 steel beam has a moment of inertia of \(I=125\left(10^{6} ight) \mathrm{mm}^{4}\). 18 kNm A -4 m- D B3m 3m 4m m- 18 kNm
-
Assume Ashland Community Hospital had the following supplies costs for two products used in its operating room. Standard costs for one surgery: Item X, 5 pieces at $50 each; Item Y, 10 pieces at $75...
-
Research and explore the cutting-edge energy below. Thorium Molten Salt Reactor Helpful links: https://www.youtube.com/watch?v=IZf6e0ntFrw...
-
Stephen is a UK resident taxpayer with two different sources of income. He works part-time as an IT consultant for a small number of clients, on a project management basis. A separate contract is...
-
Bob will retire in 40 years. His retirement goal is $1,000,000. He opened a Fdelity IRA account and plans to invest in an SP500 index. The SP500 has an expected return of 11.4%. How much should he...
-
Since a true consensus requires agreement, commitment, and satisfaction of group members, do you think groups are likely to achieve a true consensus?
-
Should team roles be chosen by team members?
-
Award-winning film about a mother who challenges local authorities to solve her daughters brutal murder. Does the main character, played by Frances McDormand, use defiance or resistance strategies,...
-
What have researchers found about the benefits of using a Balanced Scorecard.
-
Information is power. Can misinformation also serve as a power resource?
-
A commercial property is anticipate to generate a net operating income (NOI) of $13,000. The property is currently valued at $198,000. If the property's capitalization rate (cap rate) declines by 0.8...
-
The senior management at Davis Watercraft would like to determine if it is possible to improve firm profitability by changing their existing product mix. Currently, the product mix is determined by...
-
On October 1, 2013, the Submarine Sandwich Company entered into a franchise agreement with an individual. In exchange for an initial franchise fee of $300,000, Submarine will provide initial services...
-
Collinsworth LTD., a U.K. company, prepares its financial statements according to International Financial Reporting Standards. Late in its 2013 fiscal year, a significant adverse change in business...
-
The following is a June 30, 2013, post-closing trial balance for Excell Company. Additional Information: 1. The short-term investments account includes $18,000 in U.S. treasury bills purchased in...
-
LDDS continued to publicly report increasing profits and sales in the financial statements, which allowed it to acquire more companies with no limit to the growth of its stock price. True/False
-
WorldCom overstated its sales by holding its books open at the close of a reporting period. True/False
-
WorldCom overstated its earnings by improper accounting for multiple element contracts. True/False
Study smarter with the SolutionInn App