90.2K

Verified Solution

Link Copied!

need help asap

have a residual value of $50,000. The company expects the machine to be used 120,000 canvasses the frst year Compule the frat-year oppreciatich expense on the carvas strelcher uting the following methods: a. Straight-line b. Units-of-production (Round doprociation per init lo two decimais. Round dopreciafion expense to the nearost whole dollar) c. Double-dedining-balance (Round depreclation expense to the nearest whole dollar) d. Second-year Doutile-dedining balance depreciation. (Round depreciation expense to the nearest dollar. YOU MUST SHOW YOUR WORK CN THE SCRATCH PAPER FOR THIS ITEM ONLY. 2. Compute the frist-year depreciution expense on the stretcher using the straight-fine method. b. Compute the firstyear depreciation expense on the strefcher using the units-of-production method (Round depreciation per unit to two decimais X.XX. Round depreciation expense to the nearest whole dollar) c. Compute the firstyear depreciation experse on the stretcher using the double-declining-balance methed d. Compute the SECONO-year depreciation expense on the strelcher using the double-declining-balance method You only need to show your work on the scratch paper for THIS item. 2. On January 1, your company, Brentwood At purchased a canvias stretcher for $370,000. Brentwood expects the carvas strotcher to remain useful for ten years (1,600,000 carvasses) and to have a residual vilue of $50,000. The company expects the machine to be used 120,000 carvasses the first year. Cornoute the firat-year depreciation expense on the canvas stretcher using the following methods: a. Straightline b. Units-of-production (Round depreciation per unit to two decimals. Round depreciation expense to the nearest whole dollar) c. Double-declining-balance (Round depreciation expense to the nearest whole dollar) d. Second-year Double-dediring balance depreciation. (Round depreciation expense to the nearest dollar. YOU MUST SHOW YOUR WORK ON THE SCRATCH PAPER FOR THIS ITEM ON c. DDB d. Second Year DDB - You write the formula and the answer on your scratch paper and show your calculations. The second year's depteciation using Docuble-Dectining Balance is: NOTE: If this part of the exercise doesn' work, dont worry Simply circle your answer on your scratch paper: I will hand-grade tris

Answer & Explanation Solved by verified expert

See Answer