- Fern Incorporated Bought A Machine For 70 000 Cash The Estimated Useful Life Was Five Years And The Estimated Residual 1 (211.31 KiB) Viewed 11 times
Fern Incorporated bought a machine for $70,000 cash. The estimated useful life was five years and the estimated residual value was $7,000. Assume that the estimated useful life in productive units is 204,000. Units actually produced were 54,400 in year 1 and 61,200 in year 2. Required: 1. Determine the appropriate amounts to complete the following schedule. 2-a. Which method would result in the lowest net income for year 1? 2-b. Which method would result in the lowest net income for year 2? 3. Which method would result in the lowest fixed asset turnover ratio for year 1? Complete this question by entering your answers in the tabs below. Req 1 Req 2A Method of Depreciation Req 2B Determine the appropriate amounts to complete the following schedule. (Do not round intermediate calculations. Round final answers to the nearest whole dollar.) Straight-line Units-of-production Double-declining-balance Req 3 Depreciation Expense Year 1 Year 2 < Req 1 Book Value at the End of Year 1 Year 2 Req 2A >
Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Straight-line Units-of-production Double-declining-balance Req 3 Which method would result in the lowest net income for year 1? < Req 1 Req 2B
Complete this question by entering your answers in the tabs below. Req 1 Req 2A Double-declining-balance Req 2B Which method would result in the lowest net income for year 2? Straight-line Units-of-production Req 3 Req 2A Req 3 >
Complete this question by entering your answers in the tabs below. Req 1 Req 2A Straight-line Req 2B Req 3 Which method would result in the lowest fixed asset turnover ratio for year 1? Units-of-production Double-declining-balance < Req 2B Req 3 >