At December 31, 2018 Allarco Inc.'s balance sheet showed plant and equipment information as detailed in the schedule below. Allarco Inc. calculates depreciation to the nearestwhole month.Please complete the schedule. Round depreciation per unit of production to the nearest cent.Cost InformationDepreciationDescriptionPurchase DateEquipment November 1, 2016Depreciation Method Cost Salvage ValueStraight-line226,00010,000Double-declining-Machinery July 1, 201896,00010,000Life10 years5 yearsAccum. Dep. Dep. Expense Accum. Dep.Dec. 31, 2018 for 2019Dec. 31, 2019balanceTrucksSeptember 5, 2017Units-of-production416,800 10,0001,017,000 milesThere have been no disposals or subsequent capital expenditures on the asset since the date of purchase.The miles the truck was actually driven were as follows:2017: 408,0002018: 303,0002019: 212,000For simplicity, assume that the asset is depreciated as an individual item and will not be broken down into parts and depreciated.

Equipment (Straight-Line Method)Step 1: Determine the annual depreciation rate.Formula:…

Answered: At December 31, 2018 Allarco Inc.'s…

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets

Section: Chapter Questions

Problem 5AP

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Honesty Manufacturing purchased a machine on 1 July, 2017. The following financial information has been collected to calculate the depreciation at 30 June 2019: Cost $58,500 Expected salvage value $1,000 Estimated useful life in years 5 Estimated useful life in hours 200,000 Hours used in 2020 is: 48,000 Required: Calculate the depreciation expense of the machine for the year ended 30 June 2019 using: a) Straight-line method b) Unit of activity method c) Declining balance method using double straight-line rate
At December 31, 2018 Weber Inc.'s balance sheet showed plant and equipment information as detailed in the schedule below. Weber Inc. calculates depreciation to the nearest whole month. Please complete the schedule. Round depreciation per unit of production to the nearest cent. Cost Information Description Purchase Date Depreciation Method Cost Salvage Value Life Double-declining- Machinery May 2, 2018 240,000 10,000 10 years balance Depreciation Accum. Dep. Dec. Dep. Expense Accum. Dep. Dec. 31, 2018 for 2019 31, 2019 There have been no disposals or subsequent capital expenditures on the asset since the date of purchase. For simplicity, assume that the asset is depreciated as an individual item and will not be broken down into parts and depreciated.
Frey, Inc. purchased a machine for $600,000 on January 2, 2017. The machine has an estimated useful life of 4 years and a salvage value of $100,000. The machine is being depreciated using the sum-of-the-years'-digits method. The December 31, 2018 asset balance, net of accumulated depreciation, should be: Select one: a. $250,000 Ob. $350,000 c. $280,000 Od. $320,000 $450,000
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A machine with an eight year estimated useful life and an estimated 10% residual value was acquired on January 1,2018. On December 31,2021, the balance of the accumulated depreciation on this asset, using the sum of the year's digits method would be a. Original cost x 5/36 b. (Originalcost x 90%) x 5/36 c. Original cost x 26/36 d. (Original cost x 90%) x 26/36
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