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AC301Unit 5 Excel Homework

# AC301Unit 5 Excel Homework - ,2010,for\$700,000.Theeq...

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P11-1 Depreciation Methods The Winsey Company purchased equipment on January 2 has the following characteristics: Estimated service life 20 years Estimated residual value \$50,000 100,000 hours 950,000 units of output During 2010 and 2011, the company used the machine for 4,500 and 5,500 hours, resp 60,000 units, respectively. Required Compute the depreciation for 2010 and 2011 under each of the following methods: 1. Straight-line \$700,000-\$50,000/20 years = \$3 Depreciation : 2010 \$32,500  2. Hours worked \$700,000 - \$50,000 / 100,000 ho Depreciation: 2010 2011 3. Units of output \$700,000-\$50,000/950,000 units Depreciation:  2010 2011 4. Sum-of-the-years’-digits For 20 years =  20 (21)/2 Depreciation: 2010 2011 5. Double-declining-balance Straight-line rate 1/20 = Depreciation: 2010 2011 6. 150%-declining-balance Straight-line rate 1/20=

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Depreciation: 2010 2011 7. Compute the company’s return on assets (net income divided by average total asset method for 2010 and 2011, assuming that income before depreciation is \$100,000. For ignore interest, income taxes, and other assets. Straight - Line RTN on total assets for 2010 =  2010 100,000-32 2011 100000 - 3 Hours worked 2010 100,000 - 2 2011 100,000 - 3 Units of output 2010 100,000 - 2 2011 100,000 - 4 sum of the years digits 2010 100,000 - 6 2011 100,000 - 5 Double declining balance 2010 100,000 - 7 2011 100,000 - 6 150% declining balance 2010 100,000 - 5 2011 100,000 - 4

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2, 2010, for \$700,000. The equipment pectively, and produced 40,000 and 32,500 per year 2011 \$32,500  ours = \$6.50 per year 6.5 4500 hours \$29,250  6.5 4501 hours \$35,750  s = \$0.68 per unit 0.68 40,000 units
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AC301Unit 5 Excel Homework - ,2010,for\$700,000.Theeq...

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