{"id":75600,"date":"2018-02-20T23:50:30","date_gmt":"2018-02-20T23:50:30","guid":{"rendered":"https:\/\/writemyessayfree.com\/p9-3a-_thao-company-_depericiation-expense-2"},"modified":"2017-08-18T07:02:43","modified_gmt":"2017-08-18T07:02:43","slug":"p9-3a-_thao-company-_depericiation-expense-2","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/p9-3a-_thao-company-_depericiation-expense-2\/","title":{"rendered":"P9-3A _Thao Company _Depericiation Expense"},"content":{"rendered":"<p><a class=\"p9-3a-_thao-company-_depericiation-expense-3\/\"><\/a> <\/p>\n<p><strong>P9-3A<\/strong>On January 1, 2014, Thao Company purchased the following two machines for use in its production process.<\/p>\n<p>Machine A: The cash price of this machine was $35,000. Related expenditures included: sales tax $1,700, shipping costs $150, insurance during shipping $80, installation and testing costs $70, and $100 of oil and lubricants to be used with the machinery during its first year of operations. Thao esti\u00admates that the useful life of the machine is 5 years with a $5,000 salvage value remaining at the end of that time period. Assume that the straight-line method of depreciation is used.<\/p>\n<p>Machine B: The recorded cost of this machine was $80,000. Thao estimates that the useful life of the machine is 4 years with a $5,000 salvage value remain\u00ading at the end of that time period.<\/p>\n<p><em>Instructions<\/em><\/p>\n<p>(a)\u2019 Prepare the following for Machine A.<\/p>\n<p>(1) The journal entry to record its purchase on January 1, 2014.<\/p>\n<p>(2) The journal entry to record annual depreciation at December 31, 2014.<\/p>\n<p>(b) Calculate the amount of depreciation expense that Thao should record for Machine Beach year of its useful life under the following assumptions.<\/p>\n<p>(1) Thao uses the straight-line method of depreciation..<\/p>\n<p>(2) Thao uses the declining-balance method. The rate used is twice the straight-line rate.<\/p>\n<p>(3) Thao uses the units-of-activity method and estimates that the useful life of the machine is 125,000 units. Actual usage is as follows: 2014, 42,000 units; 2015, 35,000units; 2016, 28,000 units; 2017, 20,000 units.<\/p>\n<p>(c) Which method used to calculate depreciation on Machine B reports the highest amount of depreciation expense in year 1 (2014)? The highest amount in year 4 (2017)? The highest total amount over the 4-year period?<i><\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>P9-3AOn January 1, 2014, Thao Company purchased the following two machines for use in its production process. Machine A: The cash price of this machine was $35,000. Related expenditures included: sales tax $1,700, shipping costs $150, insurance during shipping $80, <a href=\"https:\/\/www.benedictsol.com\/blogs\/p9-3a-_thao-company-_depericiation-expense-2\/\" class=\"read-more\">Read More &#8230;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-75600","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/75600","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=75600"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/75600\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=75600"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=75600"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=75600"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}