HW924pointseBookHintSavedSonic Corporation purchased and installed electronic payment equipment at its drive-in restaurants in San Marcos, TX, at a cost of$45,900. The equipment has an estimated residual value of $1,800. The equipment is expected to process 273,000 payments over itsthree-year useful life. Per year, expected payment transactions are 65,520, year 1; 150,150, year 2; and 57,330, year 3.Required:Complete a depreciation schedule for each of the alternative methods.1. Straight-line.2. Units-of-production.3. Double-declining-balance.Complete this question by entering your answers in the tabs below.PrintRequired 1 Required 2 Required 3ReferencesComplete a depreciation schedule for the double-declining-balance method. (Do not round intermediate calculations.]IncomeStatementBalance SheetYearDepreciationExpenseCostAccumulatedDepreciationBook ValueAt acquisition123< Required 2Required 3>

The objective of the question is to calculate the depreciation expense for each year using three…

Answered: HW9 2 4 points eBook Hint Saved Sonic…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Grant Company has acquired a machine and equipment on January 2, 2018. The cost of the machine (including installation cost and decommissioning cost), P80,000,000 and the cost of the equipment is P20,000,000. The machine produces chemical products that are sold to overseas customers. As a condition to operate the machine, regular inspection for faults is performed every year at a cost of P1,000,000. The life of the machine is 10 years while the equipment 5 years. The company uses the straight-line method of depreciation. On January 1, 2021, a cost was incurred to overhaul the machine at a cost of P4,000,000. After the overhaul, the machine is expected to produced twice as it was producing in the prior years. Also, a residual value of P1,200,000 is expected on this machine. What is the total carrying value of the manufacturing plant (machine, and equipment) as of December 31, 2021?
Polytechnic University of the Philippines - Manila purchased 50 units of Inverter-type Airconditioning units from a supplier on April 01, 2021 at an invoice price amounted to P3,000,000 intended for various offices to replace all unserviceable units and was operational only on July 17, 2021 after inspected, tested and installed. The estimated useful life of the asset is 5 years.1. Compute the carrying value of the airconditioning units on December 31, 2023. 2. How much is the depreciation expense for 2021?
Due to equipment power failure of Ceramics Plant, a disbursement a day would be$3,500. To avoid future power failures, it is recommended to purchase a standby machinefor $30,000 which is estimated to have a useful life of 14 years, $7,000 salvage value atthe end of this time. Previous records illustrate normal power failure of 4 days each year.Annual maintenance and operation would cost $3,200 for 4 days. Minimum required rateof return is 17%. Will you recommend purchasing the standby machine?
On January 3, 2020, Gagne Inc. paid $320,000 for a computer system. In addition to the basic purchase price, the company paid a setup fee of $2,500, $6,400 sales tax, and $21,100 for special installation. Management estimates that the computer will remain in service for five years and have a residual value of $20,000. The computer will process 50,000 documents the first year, decreasing annually by 5,000 during each of the next four years (that is 45,000 documents in 2021, 40,000 documents is 2022, and so on). In trying to decide which depreciation method to use, the company president has requested a depreciation schedule for each of three depreciation methods (straight-line, units-of-production, and double-diminishing-balance). Before completing the straight-line depreciation schedule, calculate the straight-line depreciation rate. First, select the labels for the formula and then compute the rate. (Round the rate to two decimal places.) Date January 3, 2020 December 31, 2020 December…
Sushi Corp. purchased and installed electronic payment equipment at its drive-in restaurants in San Marcos, TX, at a cost of $51,300. The equipment has an estimated residual value of $3,300 The equipment is expected to process 267,000 payments over its three- year useful life. Per year, expected payment transactions are 64,080, year 1, 146,850, year 2, and 56,070, year 3. TIP: You cannot depreciation past residual/salvage value in the last year of depreciation. Required: Complete a depreciation schedule for each of the alternative methods. 1. Straight-line. 2. Units-of-production. 3. Double-declining-balance. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Complete a depreciation schedule for Straight-line method. (Do not round intermediate calculations.) Income Statement Year At acquisition 1 2 3 Depreciation Expense $ Cost 51,300 51,300 Balance Sheet wwwwww 51,300 Accumulated Depreciation Required 1 Book Value Required 2 >
On 1/1/2020, the Horizon Industrial Company purchased a machine on the account whose price is 850,000 dinars, and it is subject to a sales tax of 10,000 dinars. The company paid in cash the fees for transporting and installing the machine 60,000 dinars, the costs of making a special base for the machine with electricity extensions 40,000 dinars, and the costs of conducting the start-up experiments 140,000 dinars. The company estimated the life span of the machine at five years, and its salvage value is 200,000 dinars. The machine is depreciated according to the straight-line method.On 1/1/2021, the company conducted a coverage test for this machine and found that the fair market value of the machine minus its selling costs is 580,000 dinars and that the net present value of the cash flows is expected to be obtained from using the machine is 660,000 dinars. And that the remaining life of the machine is 3 years, not 4 years.On December 31, 2022, the company conducted a coverage test for…
6. Cheyenne Company manufactures a check-in kiosk with an estimated economic life of 12 years and leases it to National Airlines for a period of 10 years. The normal selling price of the equipment is $276,779, and its unguaranteed residual value at the end of the lease term is estimated to be $18,400. National will pay annual payments of $39,900 at the beginning of each year. Cheyenne incurred costs of $189,300 in manufacturing the equipment and $3,700 in sales commissions in closing the lease. Cheyenne has determined that the collectibility of the lease payments is probable and that the implicit interest rate is 10%.Click here to view factor tables. (a) Discuss the nature of this lease in relation to the lessor.This is a .Compute the amount of each of the following items. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to 0 decimal places, e.g.…
On 1 July 20X4, Experimenter opened a chemical reprocessing plant. The plant was due to be active for five years until 30 June 20X9, when it would be decommissioned. At 1 July 20X4, the costs of decommissioning the plant were estimated to be $4 million in 5 years’ time. The company considers that a discount rate of 12% is appropriate for the calculation of a present value, and the discount factor at 12% for Year 5 is 0.567. What is the total charge to the statement of profit or loss (depreciation and finance charge) in respect of the decommissioning for the year ended 30 June 20X5?
It costs a railroad company $6500 at the begin of each year to maintain a level- crossing gate system. How much can the company contribute toward the cost of an underpass that will eliminate the level-crossing system, if money is worth 13.16 % per annum compounded daily ? Answer: 52730.44
The company manufactures a line of equipment which it sells to wholesalers. The company sold 5,000 items of this type this year, which also has a one-year guarantee if the equipment fails. Based on past experience, 10% of items sold are returned for repair. The estimated repair cost is OMR 150. What should be the value of provisions to be made? O a. OMR 75,000. O b. OMR 150. O C. OMR 500. O d. OMR 750,000.
7) Crass Spray Inc. (CSI) purchased equipment costing $60,000 on September 1, 2023. CSI made a $20,000 down payment and took out a loan for the remaining amount. Other cash expenditures related to this purchase included: Insurance during shipping: $500 Annual insurance policy: $2,400 Installation and testing costs: $600 Staff training costs on how to run the new equipment: $700 Required Determine the cost of the new equipment and record all required journal entries related to this equipment (you can ignore depreciation expense for the year).
On 1/1 2019, the Al-Qadhafi Industrial Company purchased an automated packaging line at a price of $60,000, and the company paid in cash the fees for transporting a packaging line $55,000, the work costs of a special base for the line $135,000, and the costs of conducting start-up experiments at $150,000. The company estimated the shelf life of the packaging line 6 years, the scrap value $400,000 and it is depreciated according to the straight line. On December 31, 2019, it was found that the fair market value of the packaging line, minus its selling costs, equals $11,750,000, and its remaining life is 4 years, not 5 years. Required 1- Acknowledgment of the operations related to the packaging line in the books of the Food Industries Company:• Costs incurred to get the packaging line ready for use• Inventory adjustments at the end of 2019• Impairment in the value of the packaging line at the end of 2019• Inventory adjustments at the end of 2020• 2- Preparing the partial financial…

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