Ac550 Week 7 Homework Tutorial

AC550 Intermediate Accounting I Week 7 readiness Professor reckon Due: Chapter 11: E 11-4, E 11-8, E 11-9, E 11-11, E 11-17, E 11-24, P 11-5 E11-4 (Depreciation Computations cinque Methods) Wenner Furnace Corp. purchased machinery for $279,000 on whitethorn 1, 2012. It is estimated that it will have a reusable life of 10 years, salvage treasure of $15,000, production of 240,000 units, and works hours of 25,000. During 2013, Wenner Corp. uses the machinery for 2,650 hours, and the machinery produces 25,500 units. Instructions From the information given, visualise the depreciation charge for 2013 below each of the following methods. (Round to the close dollar.) (a)Straight-line. (b)Units-of-output. (c)Working hours. (d)Sum-of-the-years-digits. (e)Double-declining-balance. (a)$279,000 $15,000 = $264,000; $264,000 ÷ 10 yrs. = $26,400 (b)$264,000 ÷ 240,000 units = $1.10; 25,500 units X $1.10 = $28,050 (c)$264,000 ÷ 25,000 hours = $10.56 per hr.; 2,650 hrs. X $10.

56 = $27,984 (d)| 10 + 9 + 8 + 7 + 6 + 5 + 4 + 3 + 2 + 1 = 55 OR| n(n + 1)| =| 10(11)| = 55| | | 2| | 2| | 10| x $264,000 x 1/3 =| $16,000| 55| | | 9| x $264,000 x 2/3 =| 28,800| 55| | | | | | tally for 2013| $44,800| (e)| $279,000 x 20% x 1/3 = | $18,600| | | | | [$279,000 ($279,000 X 20%)] x 20% x 2/3 =| 29,760| | | | | Total for 2013| $48,360| E11-8 (Depreciation ComputationRe adornment, Nonmonetary Exchange) Goldman Corporation bought a machine on June 1, 2010, for $31,800, f.o.b. the place of manufacture. Freight to the point where it was position up was $200, and $500 was expended to break in it. The machines usefu l life was estimated at 10 years, with a sal! vage value of $2,500. On June 1, 2011, an essential constituent of the machine is replaced, at a cost of $2,700, with one knowing to reduce the cost of direct the machine. The cost of the old erupt and related...If you want to get a full essay, order it on our website: OrderEssay.net

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