Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on january 1,2024, pharoah company acquired equipm

On January 1,2024, Pharoah Company acquired equipment costing $137,500, which will be depreciated on the...

50.1K

Verified Solution

Question

Accounting

On January 1,2024, Pharoah Company acquired equipment costing $137,500, which will be depreciated on the assumption that the equipment will be useful for five years and have a residual value of $12,100. The estimated output from this equipment is as follows: 2024-15,000 units; 2025-23,000 units; 2026-31,000 units; 2027-26,000 units; 2028-19,000 units. The company is now considering possible methods of depreciation for this asset.
(a)
Calculate what the depreciation expense would be for each year of the asset's life, if the company chooses:
i. The straight-line method
Straight-line depreciation $ per year
ii. The units-of-production method (Round depreciation per unit to 2 decimal places, e.g.15.25 and depreciation expense to 0 decimal places, e.g.125.)
Units-of-production method depreciation $
per unit
Year
Depreciation Expense
2024
$
2025
$
2026
$
2027$
2028
$
iii. The double-diminishing-balance method
Rate
%
Year
Depreciation Expense
2024
$
2025
$
2026
$
2027
$
2028
$
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Physics
1.2K views

Column I A No of orbitals in the n shell B Max no of electrons...

Biology
1.2K views

Question 7 Match the following letter with the correct term B C D BA D...

Biology
1.2K views

Match the type of skin cancer with the origin of the cancerous cells melanocytes keratinocytes...

Basic Math
1.2K views

Factor the following expression completely:27x +24x16

Statistics
1.2K views

Kthrough d below Bicy is used when system reliability is improved through redundant or backup...

Accounting
1.2K views

Question 8 Luqman had been working as a consultant for Tyco Bhd since April 2008....

Accounting
1.2K views

Bargain Company reported the following information for the current year: Sales (50,000 units) $1,000,000, direct...

Accounting
1.2K views

How much would it cost for Chester Corporation to repurchase all its outstanding shares if...

Accounting
1.2K views

4 Chapter & Accounting for Merchandising Businesses RG-9A Periodic inventory accounts, multiple-step income statement On...

Finance
1.2K views

Why is it important to compare an individual stock to a relevant index?

Accounting
1.2K views

the percentage of expenditures a customer makes with one particular firm compared to total expenditures...

Accounting
1.2K views

D 1 2 3 Ozark Corporation manufacturs industrial supplies for construction companies. Below is the...