The units-of-production method of depreciation

Assignment Help Financial Accounting

Reference no: EM13775300

On March 1 of the current year, Lohan Company purchased and placed in service a machine with a cost of $240,000. The company estimated the machine's useful life to be four years or 60,000 total units of output with an estimated salvage value of $65,000. During the current year, 14,000 units were produced. Prepare the necessary December 31 adjusting journal entry to record depreciation for the current year assuming the company uses:

a. The straight-line method of depreciation

b. The units-of-production method of depreciation

c. The double-declining balance method of depreciation.

Reference no: EM13775300

Questions Cloud

How did you first become aware of aspect of your identity : When and how did you first become aware of this aspect of your identity/diversity? Is there a particular event, or series of events, that stand out in your mind?

Calculate the usable area in square feet of house : Calculate the usable area in square feet of house. Assume that the house has a maximum of four rooms, and that each room is rectangular.

Determine the degree to which law is made stable : Discuss the major functions of the U.S. Supreme Court. Determine the degree to which law is made stable as a result of lifetime appointments. Justify your rationale

Approach fit that companys mission or strategic plan : Many companies market their products and/or services to children or young teens. Identify one product and/or service that does this. Do you feel it is appropriate to market this product or service to this age group? Explain. Does this approach fit th..

The units-of-production method of depreciation : On March 1 of the current year, Lohan Company purchased and placed in service a machine with a cost of $240,000. The company estimated the machine's useful life to be four years or 60,000 total units of output with an estimated salvage value of $65,0..

Explain how data correlates to winnicots concept : Explain how data correlates to Winnicot's concept of the Good Enough Mother found. Be sure to cite the Hurley and Weaver, et al. articles in your initial post.

Highest level of productivity in a culturally : Recommend three specific actions a project manager should take to ensure the highest level of productivity in a culturally diverse project team. Why should project managers concern themselves with the diversity issue?

Owners efficiently develop and operate their business : Smathers and Branson handcrafts needlepoint belts and other products. Company founders, Peter Smathers Carter and Austin Branson stress the importance of planning and budgeting. How can budgeting help the owners efficiently develop and operate their ..

Prepare the journal entry to record employer payroll taxes : Marshall Co. employs a staff of 30 at a total monthly gross pay of $60,000. The company withholds federal income tax at 20% and state income tax at 3% for all employees. In addition, the following tax rates apply: FICA tax, 7.65%; Federal unemploymen..

User Account

All Pages