Banko Incorporated manufactures sporting goods. The following information applies to a machine purchased on January 1, Year 1: Purchase price $ 70,500 Delivery cost $ 6,000 Installation charge $1,000 Estimated life 5 years Estimated units 149,000 Salvage estimate $ 3,000 During Year 1, the machine produced 45,000 units, and during Year 2 it produced 47,000 units. Required: Determine the amount of depreciation expense for Year 1 and Year 2 using straight-line method. Determine the amount of depreciation expense for Year 1 and Year 2 using double-declining-balance method. Determine the amount of depreciation expense for Year 1 and Year 2 using units of production method. Determine the amount of depreciation expense for Year 1 and Year 2 using MACR

Banko Incorporated manufactures sporting goods. The following information applies to a machine purchased on January 1, Year 1: Purchase price $ 70,500 Delivery cost $ 6,000 Installation charge $1,000 Estimated life 5 years Estimated units 149,000 Salvage estimate $ 3,000 During Year 1, the machine produced 45,000 units, and during Year 2 it produced 47,000 units. Required: Determine the amount of depreciation expense for Year 1 and Year 2 using straight-line method. Determine the amount of depreciation expense for Year 1 and Year 2 using double-declining-balance method. Determine the amount of depreciation expense for Year 1 and Year 2 using units of production method. Determine the amount of depreciation expense for Year 1 and Year 2 using MACR

Name: Banko Incorporated manufactures sporting goods. The following informa
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Description: Banko Incorporated manufactures sporting goods. The following information applies to a machine purchased on January 1,Year 1: Purchase price $ 70,500 Delivery cost $ 6,000 Installation charge $ 1,000 Estimated life 5 years Estimated units149,000 Sal

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 1AFE

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Banko Incorporated manufactures sporting goods. The following information applies to a machine purchased on January 1, Year 1. Purchase price $85,800 Delivery cost $5,000 Installation charge $2,000 Estimated life 5 years Estimated units 148,000 Salvage estimate $4,000 During Year 1, the machine produced 44,000 units, and during Year 2 it produced 46,000 units. Required Determine the amount of depreciation expense for Year 1 and Year 2 using straight-line method. Determine the amount of depreciation expense for Year 1 and Year 2 using double-declining-balance method. Determine the amount of depreciation expense for Year 1 and Year 2 using units of production method. Determine the amount of depreciation expense for Year 1 and Year 2 using MACRS, assuming that the machine is classified as seven-year property. (Round your answers to the nearest dollar amount.) MACRS table: Year 5-Year property,% 7-Year property,% 1 20.00 14.29 2 32.00 24.49 3…