Please do not give solution in image format thanku Cullumber Ltd. purchased a new machine on April 4, 2017, at a cost of $184,000. The company estimated that the machine would havea residual value of $16,000. The machine is expected to be used for 10,000 working hours during its four-year life. Actual machineusage was 1.500 hours in 2017: 2,400 hours in 2018: 2,000 hours in 2019, 2.200 hours in 2020; and 1,900 hours in 2021. Cullumberhas a December 31 year end Calculate depreciation for the machine under each of the following methods: (Round expense per unit to 2 decimal places, eg 2.75and final answers to O decimal places, eg. 5,275)(1) Straight-line for 2017 through to 2021.2017 expense $2018 expense $2019 expense $2020 expense2021 expense(2) Diminishing-balance using double the straight-line rate for 2017 through to 2021.2018 expense2017 expense $2019 expense2020 expense2021 expenseS2018 expense$2019 expense2020 expense5001 mense$(3) Units-of-production for 2017 through to 2021.$2017 expense $S$$$S$

Name: Please do not give solution in image format thanku Cullumber Ltd. purc
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: Please do not give solution in image format thanku Cullumber Ltd. purchased a new machine on April 4, 2017, at a cost of $184,000. The company estimated that the machine would havea residual value of $16,000. The machine is expected to be used for 10

According to the question given, we need to compute the depreciation expense under the straight-line…

Business

Accounting

Cullumber Ltd. purchased a new machine on April 4, 2017, at a cost of $184,000. The company estimated that the machine would have a residual value of $16,000. The machine is expected to be used for 10,000 working hours during its four-year life. Actual machine usage was 1.500 hours in 2017; 2,400 hours in 2018: 2,000 hours in 2019, 2.200 hours in 2020; and 1,900 hours in 2021. Cullumber has a December 31 year end

Cullumber Ltd. purchased a new machine on April 4, 2017, at a cost of $184,000. The company estimated that the machine would have a residual value of $16,000. The machine is expected to be used for 10,000 working hours during its four-year life. Actual machine usage was 1.500 hours in 2017; 2,400 hours in 2018: 2,000 hours in 2019, 2.200 hours in 2020; and 1,900 hours in 2021. Cullumber has a December 31 year end

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 4RE: Utica Machinery Company purchases an asset for 1,200,000. After the machine has been used for 25,000...

See similar textbooks

Similar questions

Utica Machinery Company purchases an asset for 1,200,000. After the machine has been used for 25,000 hours, the company expects to sell the asset for 150,000. What is the depreciation rate per hour based on activity?
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 $16,000. The machine is expected to be used for 10,750 working hours during its four-year life. Actual machine usage was 1,600 hours in 2017; 2,100 hours in 2018; 2,300 hours in 2019; 2,100 hours in 2020; and 1,700 hours in 2021. Ivanhoe has a December 31 year end. Calculate depreciation for the machine under each of the following methods: Round expense per unit to 2 decimal places(1) Straight-line for 2017 through to 2021. 2017 expense $enter a dollar amount 2018 expense $enter a dollar amount 2019 expense $enter a dollar amount 2020 expense $enter a dollar amount 2021 expense $enter a dollar amount (2) Diminishing-balance using double the straight-line rate for 2017 through to 2021. 2017 expense $enter a dollar amount 2018 expense $enter a dollar amount 2019 expense…
QI-Aws Company purchases a factory machine at a cost of $18,000 on January 1, 2012. Aws expects the machine to have a salvage value (residual value) of $2,000 at the end of Its 4- year useful life. During its useful life, the machine is expected to be used 160,000 hours. Actual Annual hourly use was: 2012, 40,000; 2013, 60,000; 2014, 35,000; 2015, 25,000 Instructions a- Prepare depreciation schedules for the following methods: (a) straight-line, (b) units-of-production, and (c) declining-balance (DDB Method) b-Show the book value of the machine at the end of 2014 at the balance sheet c- Prepare the journal entries on 1/1/2012, 31/6/2014 Q2- On January 1, 2012, XYZ Co. purchased a car at a historical cost of $28,000. The car has been depreciated by the straight-line method using a 4-year useful life and a $4,000 salvage value (residual value). The company's financial year ends on December 31. Instructions Prepare the journal entry or entries to record the disposal (discard) of the car…
On January 1, 2014, Courier Inc. purchased new equipment that had a total cost (including shipping and installation) of $79,000. The equipment is expected to have a useful life of four years or produce a total of 119,000 units. At the end of its life, the equipment is expected to have a residual value of $4,400. The equipment is expected to produce 28,560 units in 2014; 30,940 units in 2015; 33,320 units in 2016; and 26,180 units in 2017. Courier Inc.'s fiscal year ends on December 31. In the table below, fill in the missing depreciation expense and accumulated depreciation amounts using the straight-line, double-declining-balance, and units-of-production methods. Do not round your intermediate calculation. When required, round your answers to the nearest dollar. Cost$79,000 Depreciation Expense Accumulated Depreciation Year Straight-lineMethod Double-Declining-Balance Method Unit-of-ProductionMethod Straight-lineMethod Double-Declining-Balance Method Unit-of-ProductionMethod…
On June 15, 2017, a second-hand machine was purchased for $187,000. Before being put into service, the equipment was overhauled at a cost of $9,800, and additional costs of $400 for direct material and $800 for direct labour were paid in fine-tuning the controls. The machine has an estimated residual value of $6,000 at the end of its five-year useful life. The machine is expected to operate for 100,000 hours before it will be replaced and is expected to produce 1.20 million units in this time. Operating data for the next six fiscal years are provided below. The company has an October 31 fiscal year end. Year 2017 2018 2019 2020 2021 2022 Hours of Operation 10,000 20,000 20,000 20,000 18,000 12,000 Units Produced 110,000 270,000 264,000 310,000 134,000 112,000 Calculate the depreciation charges for each fiscal year under each of the following depreciation methods. (Round unit-of-output per unit to 4 decimal places, e.g. 15.2345 and Round other answers to O decimal places, e.g. 5,275.)…
Fleet Sports purchased a production machine with a cost of $180,000 at the beginning of 2019. Transportation costs to get the machine ready were $5,000. An additional $15,000 of labor costs were incurred to assemble the machine. The equipment has an estimated life of 10 years or 100,000 snowboards (units of product). The estimated residual value is $20,000. During 2019, 17,000 snowboards (units of product) were produced with this machinery. Determine the following, and show your work: 4.What is the book value of the equipment at the end of 2020 using straight-line depreciation? 5.What is depreciation expense for the equipment at the end of 2019 using double-declining balance depreciation? 6What journal entry is needed at the end of 2020 to record depreciation expense using double-declining balance depreciation?
Faye, Inc. finished constructing its factory on Jan. 1, 2012 at a total cost of P80,000,000. The factory has an estimated useful life of 40 years with ho residual value. On Jan. 1, 2021, Faye replaced the walls on one of the areas of the factory at a total cost of P10,000,000. The estimates reveal that the cost allocated to the walls is P5,000,000. This improvement will increase the life of factory by 5 years. How much is the Loss on Replacement to be recognized on Jan. 1, 2021?.
A machine that cost $475,500, with a four-year life and an estimated $48,000 residual value, was installed in Haley Company’s factory on September 1, 2020. The factory manager estimated that the machine would produce 475,000 units of product during its life. It actually produced the following units: 2020, 21,000; 2021, 128,500; 2022, 125,000; 2023, 108,300; and 2024, 102,200. The company’s year-end is December 31.Required:Show the depreciation for each year and the total depreciation for the machine under each depreciation method calculated to the nearest whole month. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.)
On June 30, 2024, Prego Equipment purchased a precision laser - guided steel punch that has an expected capacity of 300,000 units and no residual value. The cost of the machine was $450,000 and is to be depreciated using the units - of - production method. During the six months of 2024, 24, 000 units of product were produced. At the beginning of 2025, engineers estimated that the machine can realistically be used to produce only another 230,000 units. During 2025, 70,000 units were produced. The company would report depreciation in 2024 of: 1)$21, 950 2) $18,000 3) $43, 900 4)$36,000
Faye, Inc. finished constructing its factory on Jan. 1, 2012 at a total cost of P80,000,000. The factory has an estimated useful life of 40 years with no residual value. On Jan. 1, 2021, Faye replaced the walls on one of the areas of the factory at a total cost of P10,000,000. The estimates reveal that the cost allocated to the walls is P5,000,000. This improvement will increase the life of factory by 5 years. How much is the Loss on Replacement to be recognized on Jan. 1, 2021?
On January 2, 2018, Quick Delivery Service purchased a truck at a cost of $95,000. Before placing the truck in service, Quick spent $2,200 painting it, $1,500 replacing tires, and $10,300 overhauling the engine. The truck should remain in service for five years and have a residual value of $10,000. The truck's annual mileage is expected to be 26,000 miles in each of the first four years and 19,750 miles in the fifth year-123,750 miles in total. In deciding which depreciation method to use, Carl Thomas, the general manager, requests a depreciation schedule for each of the depreciation methods (straight-line, units-of-production, and double-declining-balance). Read the requirements Requirement 1. Prepare a depreciation schedule for each depreciation method, showing asset cost, depreciation expense, accumulated depreciation, and asset book value. Begin by preparing a depreciation schedule using the straight-line method. Straight-Line Depreciation Schedule 1 Requirements - X Depreciation…
Quinine Company has a 12/31 year end and buys a bottling machine to use in its manufacturing plant on September 12, 2009. The cost of the machine is $300,000, Taxes, duty and freight on the machine totaled $30,000. Expected solvage value is for the scrap value of the metal and is thought to be $10,000. The company uses the units of production method and the machine is expected to last 5.000 machine hours. Actual usage in 2009 was 600 hours and in 2010 1,400 hours Depreciation expense recorded in 2010 would be: Mutiple Choice Some other amount $92,400 $140.800 $145.200