3. Warton Construction Company purchased a cement mixer for $14,500. The mixer is expected to have a useful life of 5 years and a residual value of $1000 at the end of that time. According to engineers, the mixer has an estimated life of 7,500 hours, of which 2,625 hours were used in yr 1902. The company's year-end is Dec 31. Required: (CLO 4 & 5) a. Compute the depreciation expense for year 1902 assuming the cement mixer was purchased on Jan 1, 1901 using Unit of activity method and Double Declining balance method. b. Compute the depreciation expense for year 1902 assuming the cement mixer was purchased on July 1, 1901 using Unit of activity and Double Declining balance method. c. Do journal entry to record the depreciation expense computed in part a.

3. Warton Construction Company purchased a cement mixer for $14,500. The mixer is expected to have a useful life of 5 years and a residual value of $1000 at the end of that time. According to engineers, the mixer has an estimated life of 7,500 hours, of which 2,625 hours were used in yr 1902. The company's year-end is Dec 31. Required: (CLO 4 & 5) a. Compute the depreciation expense for year 1902 assuming the cement mixer was purchased on Jan 1, 1901 using Unit of activity method and Double Declining balance method. b. Compute the depreciation expense for year 1902 assuming the cement mixer was purchased on July 1, 1901 using Unit of activity and Double Declining balance method. c. Do journal entry to record the depreciation expense computed in part a.

Name: 3. Warton Construction Company purchased a cement mixer for $14,500.
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Description: 3. Warton Construction Company purchased a cement mixer for $14,500. The mixer isexpected to have a useful life of 5 years and a residual value of $1000 at the end of thattime. According to engineers, the mixer has an estimated life of 7,500 hours,

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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