Intermediate Accounting
1st Edition
ISBN: 9780132162302
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Chapter 11, Problem 11.10BE
To determine
Depreciation expense for first 2 years and net book value of the machinery after the end of 2nd year.
Given information:
Cost of the machine is $250,000.
Useful life is 10 years.
Residual value is $50,000.
Total expected output is 100,000 units.
Actual output in first year was 12,000 units.
Actual output during second year was 8,000 units.
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Calculate the amount of depreciation expense that Novak should record for Machine B each year of its useful life under the
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(1) Novak uses the straight-line method of depreciation.
(2) Novak uses the declining-balance method. The rate used is twice the straight-line rate.
(3)
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Depreciation Expense
2022
2023
2024
20
Straight-
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Declining-
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Units-of-
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Copy equipment was acquired at the beginning of the year at a cost of $25,200 that has an estimated residual value of $2,300 and an
estimated useful life of 5 years. It is estimated that the machine will output an estimated 1,145,000 copies. This year, 246,000 copies were
made.
a. Determine the depreciable cost.
b. Determine the depreciation rate. Round your answer to two decimal places.
per copy
c. Determine the units-of-activity depreciation for the year.
LA
?
A utility vehicle purchased by Knox industries should last 110,000 miles .  the accusation cost was 21,200 and the salvage value is 1,913. Using the units of production depreciation method given the annual usage information calculate the accumulated depreciation at the end of year to round your depreciation per unit to three decimal places run your answer to the nearest cent.  year one 22,029. 
Your two 22,724.  Year 3 23,420. year 4 23,188. 
Answer key
A.3,976.70
B.4,098.50
C.7,831.78
D.13,368.23

Chapter 11 Solutions
Intermediate Accounting
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