User Account

All Pages

Determine the depreciation expense

Assignment Help Financial Accounting
Reference no: EM132980549

Question - On April 11, 2020, RGR Textiles purchases a machine. RGR records depreciation on assets purchased or sold during the year to the nearest whole month. RGR has a November 30 year end. Facts concerning the machine follow:

Cost $159,000

Useful life (in years) 4

Physical life (in years) 7

Residual value $57,240.00

Salvage value zero

Number of units produced with machine in 2020 22,000

Number of units produced with machine in 2021 28,200

RGR Textiles estimates that the machine will produce 125,400 units over its estimated useful life.

Required -

1. Assume that RGR Textiles follows IFRS.

a. Calculate the 2020 and 2021 depreciation expense assuming a straight-line method.

b. Calculate the 2020 and 2021 depreciation expense assuming the units of-production method is used.

2. Assume that RGR Textiles follows ASPE. Determine the 2020 and 2021 depreciation expense if the straight-line method is chosen.

Reference no: EM132980549

Questions Cloud

Contrast management approaches to sustainability : produce a discussion paper for a group exercise with other candidates which analyses the implications for businesses of the cultural and regulatory diversity in
What advantages using types of methods in a nursing study : What advantages or disadvantages do you see in using both types of methods in a nursing study? Support your answer with current evidence-based literature.
Calculate the growth rate in dividends : You expect it to pay dividends of $1.04, $1.1024, and $1.1685 in Years 1, 2, and 3, respectively, Calculate the growth rate in dividends
Analyze current practice to formulate researchable problems : Synthesize an understanding of the research process through development of a proposal to address a nursing problem or focus area identified in nursing practice.
Determine the depreciation expense : Assume that RGR Textiles follows ASPE. Determine the 2020 and 2021 depreciation expense if the straight-line method is chosen
How will facilitate learning in a diverse population : Articulate how you, as the nurse educator, will facilitate learning in a diverse population of learners who have varying cognitive, physical
Understanding psychology and human development : Why understanding psychology and human development is important for all PGCE teachers
What is the current market price of these bonds : Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 6%. What is the current market price of these bonds
What role does public health play in improving the health : What role does public health play in improving the health of underserved communities within the US? What are the advantages of being a public health official

Reviews

Write a Review

Financial Accounting Questions & Answers

  How much does she have at the end of the year

During the year you receive a $1 dividend per share. If her total investment was $2,500, how much does she have at the end of the year ($)

  Manufactures tailpipes-mufflers and catalytic converts

Art Conroy is the assistant controller of New City Muffler, Inc., a subsidiary of New City Automotive, which manufactures tailpipes, mufflers, and catalytic converts at several plants throughout North America.

  What is the market multiple method of valuation

B&M's weighted average cost of capital (WACC) is 11%. Answer the following questions: What is the market multiple method of valuation

  What interest rate would need to be earned

What interest rate would you need to be earned in order to accumulate a total of $1,000,000 in 30 years, by adding $8,000 annually?

  Which would not have influence on optimal dividend policy

Which would not have an influence on the optimal dividend policy? Which influence the price of a stock for the firm going public by way of an IPO except

  Compute the expected rates of return

If the market rate of return increases or decreases by 2% (i.e.,12% or 8% respectively), compute the expected rates of return on both scenarios.

  Processes your mortgage request

There is the possibility that you may have to pay as much as $50,000 as part of a settlement. The issue will not be resolved before the bank processes your mortgage request.

  Find how much microtel total stockholder equity at year-end

Find How much was Microtel's total stockholders' equity at year-end? Microtel began operations at the beginning of 2016 with a $10,000 cash investment

  Find what melvin deferred tax balance should be

Melvin's income tax rates are 30% for 2020, 2021. These were Melvin's only reversible differences. At December 31, 2020, Melvin's deferred tax balance should be

  Compute the profitability index of buying the beauty salon

$6,000 per year for the next 7 years. Her opportunity cost of capital is 10.9 percent. Find the Profitability Index (PI) of buying the beauty salon

  What is online reputation management

List and describe tools for monitoring social media activity relating to a firm, its brands, and staff. What social media policies can an organization employ

  What per-visit price must be set for service to breakeven

Assume that the managers of Dominion Healthcare facility are setting the price on a new outpatient service. What per-visit price must be set for the service to breakeven? To earn an annual profit of $100,000? Repeat Part a, but assume that the variab..

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