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Wildhorse Co. purchased equipment on March 31, 2021, at a cost of $264,000. Management is considering the merits of using the diminishing-balance or units-of-production method of depreciation instead of the straight-line method, which it currently uses for other equipment. The new equipment has an estimated residual value of $8,000 and an estimated useful life of either four years or 80,000 units. Demand for the products produced by the equipment is sporadic so the equipment will be used more in some years than in others. Assume the equipment produces the following number of units each year: 14,600 units in 2021; 20,600 units in 2022; 19,800 units in 2023; 20,000 units in 2024; and 5,000 units in 2025. Wildhorse has a December 31 year end. (a) Your answer is partially correct. Prepare separate depreciation schedules for the life of the equipment using: (Round depreciation per unit to 2 decimal places, e.g. 5.28 and final answers to 0 decimal places, e.g. 5,275.) Straight-line method: 8:57 PM A

Wildhorse Co. purchased equipment on March 31, 2021, at a cost of $264,000. Management is considering the merits of using the diminishing-balance or units-of-production method of depreciation instead of the straight-line method, which it currently uses for other equipment. The new equipment has an estimated residual value of $8,000 and an estimated useful life of either four years or 80,000 units. Demand for the products produced by the equipment is sporadic so the equipment will be used more in some years than in others. Assume the equipment produces the following number of units each year: 14,600 units in 2021; 20,600 units in 2022; 19,800 units in 2023; 20,000 units in 2024; and 5,000 units in 2025. Wildhorse has a December 31 year end. (a) Your answer is partially correct. Prepare separate depreciation schedules for the life of the equipment using: (Round depreciation per unit to 2 decimal places, e.g. 5.28 and final answers to 0 decimal places, e.g. 5,275.) Straight-line method: 8:57 PM A

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 5P: Group and Composite Depreciation Chcadle Company purchased a fleet of 20 delivery trucks for 8,000...
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Twin Year 2021 $ 2022 2023 2024 2025 Depreciable Amount 256000 $ 256000 Type here to search 256000 256000 256000 Double-diminishing-balance method: Opening Depreciation Expense B $ Accumulated Depreciation 256000 hp Carrying Amount 264000
Transcribed Image Text:Twin Year 2021 $ 2022 2023 2024 2025 Depreciable Amount 256000 $ 256000 Type here to search 256000 256000 256000 Double-diminishing-balance method: Opening Depreciation Expense B $ Accumulated Depreciation 256000 hp Carrying Amount 264000
Show Attempt History Current Attempt in Progress Wildhorse Co. purchased equipment on March 31, 2021, at a cost of $264,000. Management is considering the merits of using the diminishing-balance or units-of-production method of depreciation instead of the straight-line method, which it currently uses for other equipment. The new equipment has an estimated residual value of $8,000 and an estimated useful life of either four years or 80,000 units. Demand for the products produced by the equipment is sporadic so the equipment will be used more in some years than in others. Assume the equipment produces the following number of units each year: 14,600 units in 2021; 20,600 units in 2022; 19,800 units in 2023; 20,000 units in 2024; and 5,000 units in 2025. Wildhorse has a December 31 year end. 6 (a) - Your answer is partially correct. Prepare separate depreciation schedules for the life of the equipment using: (Round depreciation per unit to 2 decimal places, e.g. 5.28 and final answers to O decimal places, e.g. 5,275.) Straight-line method: Type here to search W 3 Cre E I 4 Et O R 5 T C f & Y hp 7 H fe U K 17°C Cloudy ENG 8:57 PM 7/1/2022 F
Transcribed Image Text:Show Attempt History Current Attempt in Progress Wildhorse Co. purchased equipment on March 31, 2021, at a cost of $264,000. Management is considering the merits of using the diminishing-balance or units-of-production method of depreciation instead of the straight-line method, which it currently uses for other equipment. The new equipment has an estimated residual value of $8,000 and an estimated useful life of either four years or 80,000 units. Demand for the products produced by the equipment is sporadic so the equipment will be used more in some years than in others. Assume the equipment produces the following number of units each year: 14,600 units in 2021; 20,600 units in 2022; 19,800 units in 2023; 20,000 units in 2024; and 5,000 units in 2025. Wildhorse has a December 31 year end. 6 (a) - Your answer is partially correct. Prepare separate depreciation schedules for the life of the equipment using: (Round depreciation per unit to 2 decimal places, e.g. 5.28 and final answers to O decimal places, e.g. 5,275.) Straight-line method: Type here to search W 3 Cre E I 4 Et O R 5 T C f & Y hp 7 H fe U K 17°C Cloudy ENG 8:57 PM 7/1/2022 F
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