ACC 291T Wk 5 – Practice Connect Knowledge Check (2021 New)

Q1.Required information

[The following information applies to the questions displayed below.]

NewTech purchases computer equipment for $255,000 to use in operating activities for the next four years. It estimates the equipment’s salvage value at $20,000.

Prepare a table showing depreciation and book value for each of the four years assuming straight-line depreciation.

Q2

Required information

[The following information applies to the questions displayed below.]

NewTech purchases computer equipment for $255,000 to use in operating activities for the next four years. It estimates the equipment’s salvage value at $20,000.

Prepare a table showing depreciation and book value for each of the four years assuming double-declining-balance depreciation. (Enter all amounts positive values.)

Q3.

Required information

[The following information applies to the questions displayed below.]

Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $47,500. The machine’s useful life is estimated at 10 years, or 405,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 34,500 units of product.

Determine the machine’s second-year depreciation and year end book value under the straight-line method.

Q4.Required information

[The following information applies to the questions displayed below.]

Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $47,500. The machine’s useful life is estimated at 10 years, or 405,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 34,500 units of product.

Determine the machine’s second-year depreciation using the units-of-production method.

Q5,Required information

 [The following information applies to the questions displayed below.]

Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $47,500. The machine’s useful life is estimated at 10 years, or 405,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 34,500 units of product.

Determine the machine’s second-year depreciation using the double-declining-balance method.