Tye-Dye Company acquired machinery on Sept 1, 2023, for $1,410,000. The machinery's estimated useful life is...

Transcribed Image Text:

Tye-Dye Company acquired machinery on Sept 1, 2023, for $1,410,000. The machinery's estimated useful life is 5 years, and the estimated residual value is $124,000. The company estimates that the machine will produce 155,000 units of product during its life. During 2023, the machine produced 14,400 units of product. Required: (2 points each) 1. Determine the 2023 depreciation using Straight-line Depreciation Method 2. Determine the 2023 depreciation using Activities Based Depreciation Method 3. Determine the 2023 depreciation using Sum of Years Digit Depreciation Method 4. Determine the 2023 depreciation using Tripe Declining Balance Depreciation Method 5. Determine the 2024 depreciation using Tripe Declining Balance Depreciation Method 6. Using Tripe Declining Balance Depreciation Method, what is the machine's book value as of 12/31/24 (.5 points)? Tye-Dye Company acquired machinery on Sept 1, 2023, for $1,410,000. The machinery's estimated useful life is 5 years, and the estimated residual value is $124,000. The company estimates that the machine will produce 155,000 units of product during its life. During 2023, the machine produced 14,400 units of product. Required: (2 points each) 1. Determine the 2023 depreciation using Straight-line Depreciation Method 2. Determine the 2023 depreciation using Activities Based Depreciation Method 3. Determine the 2023 depreciation using Sum of Years Digit Depreciation Method 4. Determine the 2023 depreciation using Tripe Declining Balance Depreciation Method 5. Determine the 2024 depreciation using Tripe Declining Balance Depreciation Method 6. Using Tripe Declining Balance Depreciation Method, what is the machine's book value as of 12/31/24 (.5 points)?

Answer rating: 100% (QA)

Answer 1 To determine the 2023 depreciation using the Straightline Depreciation Method we need to calculate the annual depreciation expense Annual Depreciation Expense Cost Residual Value Useful Life ... View the full answer