Jojo Ltd. purchased a machinery on January 1, 2020. . Cost = $15,000 • Expected salvage value = $1,000 • Estimated useful life in years = 10 years • Estimated useful life in machine hours = 7,000 hours Question: Compute end of year book value for the first two years using the following methods. You must prepare a depreciation schedule for each method. a. Straight Line b. Declining Balance Units of Activity* C. *For the units of activity method, actual machine hours of use in 2020 and 2021 were 300 hours and 1000 hours respectively.

Jojo Ltd. purchased a machinery on January 1, 2020. . Cost = $15,000 • Expected salvage value = $1,000 • Estimated useful life in years = 10 years • Estimated useful life in machine hours = 7,000 hours Question: Compute end of year book value for the first two years using the following methods. You must prepare a depreciation schedule for each method. a. Straight Line b. Declining Balance Units of Activity* C. *For the units of activity method, actual machine hours of use in 2020 and 2021 were 300 hours and 1000 hours respectively.

Name: Jojo Ltd. purchased a machinery onJanuary 1, 2020.. Cost = $15,000• E
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Description: Jojo Ltd. purchased a machinery onJanuary 1, 2020.. Cost = $15,000• Expected salvage value = $1,000• Estimated useful life in years = 10years• Estimated useful life in machinehours = 7,000 hoursQuestion: Compute end of year bookvalue for the first t

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 2E: Depreciation Methods Sorter Company purchased equipment for 200,000 on January 2, 2019. The...

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Depreciation Methods Sorter Company purchased equipment for 200,000 on January 2, 2019. The equipment has an estimated service life of 8 years and an estimated residual value of 20,000. Required: Compute the depreciation expense for 2019 under each of the following methods: 1. straight-line 2. sum-of-the-years-digits 3. double-declining-balance 4. Next Level What effect does the depreciation of the equipment have on the analysis of rate of return?
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