Solution-Compute the depreciation charge under

Compute the depreciation charge under sum-of-the-years-digit

Reference no: EM132796141

Bigfoot Java, a company that sells coffee, purchased equipment on June 1, 2015 for $444,000. It is estimated it will have a 8 year useful life, salvage value of $10,000. The equipment is expected to be able to produce 500,000 coffee drinks and last 11,100 hours. During 2020, Bigfoot Java uses the equipment for 800 hours and produced 38,000 coffee drinks.

Instructions

Problem 1: Compute the depreciation charge in 2020 under each of the following methods:

Sum-of-the-years-digits
Double declining balance

Problem 2: Also, explain why might a company choose sum-of-the-years-digits method of depreciation?

Reference no: EM132796141

Questions Cloud

Examine the big five personality traits : Examine the big five personality traits to explore your thoughts and arguments about the most important personality dimension to leadership and a leader's

Which partner who administers the realization assets : Which partner who administers the realization and distribution of partnership assets after dissolution. Which the conversion of non-cash assets into cash

What is the rule of offset : What is the rule of offset? Which the loss on realization is distributed to the partners in accordance to their? Profit and loss sharing agreement

Which the process of terminating the business : Which the process of terminating the business, selling the assets, paying the liabilities, and disbursing the remaining cash to the partners is called

Compute the depreciation charge under sum-of-the-years-digit : Compute the depreciation charge in 2020 under each of the Double declining balance methods. Bigfoot Java, a company that sells coffee, purchased equipment

What is the amount of total liabilities at the end of year : If total assets decreased $90,000 and owner's equity increased $86,000 during the year, what is the amount of total liabilities at the end of the year?

What is the income tax still due after tax credit : What is the income tax still due after tax credit? Assume that Mr. Romeo Vazquez, a resident citizen of the Philippines, derived income from sources

What will be the income to controlling interest : Sub Company sold inventory for $300,000, $262,500 and $337,500 in the years 20X6, 20X7, and 20X8. What will be the income to controlling interest

Online communication tool can promote human rights : Explain how to engage, assess, intervene, and evaluate practice (micro, mezzo, or macro) with individuals, families, groups, organizations, and/or communities

User Account

All Pages

Compute the depreciation charge under sum-of-the-years-digit

Reference no: EM132796141

Reference no: EM132796141

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

Explain why the statement is necessary

Calculate the composite depreciation rate and composite life

Phillips inc manufactures industrial components one of its

Make the general journal entry to record the April

What are the weighted-average accumulated expenditures

Assumptions for inference

Griffin corporation reports 400000 of taxable income for

Barb and john reed want to know how much they must deposit

Define assessable income

Discuss manufactures recreational vehicles

What is the amount of the change in stockholders equity

Etchical considerations in making subjective valuations

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT