User Account

All Pages

Calculate the amount of depreciation expense

Assignment Help Financial Accounting
Reference no: EM132533016

On January 1, 2017, Crane SA purchased the following two machines for use in its production process.

Machine A: The cash price of this machine was €59,200. Related expenditures included: sales tax €3,900, shipping costs €300, insurance during shipping €60, installation and testing costs €1,400, and €120 of oil and lubricants to be used with the machinery during its first year of operations. Crane estimates that the useful life of the machine is 4 years with a €5,100 residual value remaining at the end of that time period.

Machine B: The recorded cost of this machine was €157,300. Crane estimates that the useful life of the machine is 5 years with a €12,100 residual value remaining at the end of that time period.

Question 1: Calculate the amount of depreciation expense that Crane should record for Machine B each year of its useful life under the following assumption. (Round answers to 0 decimal places, e.g. 2,125. Round cost per unit to 2 decimal place, e.g. 1.25.)

(1) Crane uses the straight-line method of depreciation.

(2) Crane uses the declining-balance method. The rate used is twice the straightline rate.(3)Crane uses the units-of-activity method and estimates that the useful life of the machine is 24,200 units. Actual usage is as follows: 2017, 4,500 units; 2018, 8,100 units; 2019, 6,600 units; 2020, 3,000 units and 2021, 2,000 units.

Reference no: EM132533016

Questions Cloud

Power of the federal government : In Roe v. Wade, Roe wants to get an abortion, even though Texas law forbids unless the woman's life is in danger. Which side would promote self-government
Calculate the average manufacturing period : The cost of its annual production is € 198,000, and the average value of the products under development is € 11,000. Calculate the average manufacturing period.
Comprehensive diagnosis of your current organization : Utilizing the OPM as a guideline, you will conduct a comprehensive diagnosis of your current organization using multiple sources of research.
Disparate treatment discrimination occurs : Disparate treatment discrimination occurs when an employer inentionally discriminated against an employee who is a member of a protected class.
Calculate the amount of depreciation expense : Calculate the amount of depreciation expense that Crane should record for Machine B each year of its useful life under the assumption
Some people resist the idea of working in teams : Why do you think some people resist the idea of working in teams(in IT industry) and how would you deal with their resistance?
Liabilities of incoming and outgoing partners : Explain the following with the aid of examples:
Record the disposal under assumptions : Vaughn NV has equipment that cost $49,870 and that has been depreciated $21,230. Record the disposal under It was scrapped as having no value. assumptions.
Discuss the difference between something being protected : Discuss the difference between something being protected by confidentiality and something being privileged with any attorney/client relationship.

Reviews

Write a Review

Financial Accounting Questions & Answers

  What is the purpose of a bank reconciliation

What is the purpose of a bank reconciliation? What are the reasons for differences between the cash reported in the accounting records, and the cash balance in the bank statements?

  Respect to the formation and operation of the partnership

Bob and Kate form the BK Partnership, a general partnership, as equal partners. Bob contributes an office building with a $130,000 FMV and a $95,000 adjusted basis to the partnership along with a $60,000 mortgage, which the partnership assumes. Kate,..

  Journal entries required to record the petty cash account

Prepare the journal entries required to record the petty cash account transactions that occurred during the month of March. If no entry is required

  An expert witness may not express an opinion

An expert witness may not express an opinion . . . A contract for expert testimony services should include each of the following except . . .  Consistent execution of a document destruction policy justifies destruction of subpoenaed documents. Sancti..

  Will barkley company record a profit under term modification

Will the profit recorded by Barkley be equal to the loss recorded by American Bank under the debt restructuring? Will Barkley Company record a profit under the term modification mentioned above

  Compute the depreciation expense and rent revenue

Compute the depreciation expense, rent revenue, interest expense, insurance expense and supplies expense recognized during the first quarter

  Compute the total amount of each instalment payment

On October 1 2015, gordon enterprises borrows $150,000 cash from a bank by signing a three year instalment note bearing 10% interest. The note requires equal total payments each year on September 30. Compute the total amount of each instalment paymen..

  What will the price per share of the merged firm

What will the price per share of the merged firm be assuming the conditions in (a)? (Do not round intermediate calculations and round your answer)

  Reflecting the purchase of the wood chipper

Give Sapling's entries reflecting the purchase of the wood chipper and give Fir's entries reflecting the sale of the wood chipper.

  Retirement of debt before maturity

The Long-Term Debt section of Rodman Company’s balance sheet as of December 31, 20Y1, included 8% bonds payable of $300,000 less unamortized discount of $22,000. Further examination revealed that these bonds were issued to yield 11%. The amortization..

  Prepare opening balance sheet for cookie creating

Determine and Prepare the opening balance sheet for Cookie & Coffee Creations Inc. as of November 1, 2018, including the journal entries

  Prepare the entry to record the fair value option

Pierre Company has a 12% note payable with a carrying value of $20,000. Pierre applies the fair value option to this note. Given an increase in market interest rates, the fair value of the note is $22,600. Prepare the entry to record the fair value o..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd