Please Help! :) PlasticWorks Corporation bought a machine at the beginning of th
ID: 2380357 • Letter: P
Question
Please Help! :)
PlasticWorks Corporation bought a machine at the beginning of the year at a cost of $17,600. The estimated useful life was five years, and the residual value was $2,800. Assume that the estimated productive life of the machine is 14,800 units. Expected annual production was: year 1, 4,600 units; year 2, 4,600 units; year 3, 2,800 units; year 4, 1,480 units; and year 5, 1,320 units. Complete a amortization schedule for each of the alternative methods. (Omit the "$" sign in your response.) Straight-line: Units-of-production: Double-declining-balance: (Round your answers to 2 decimal places.)Explanation / Answer
1 a Straight Line Income Satement Balance Sheet Year Amortisation Expenses Cost Accumulated Amortisation Book Value at acquisition $ 17,600.00 1 $ 2,960.00 $ 17,600.00 $ 2,960.00 $ 14,640.00 2 $ 2,960.00 $ 17,600.00 $ 5,920.00 $ 11,680.00 3 $ 2,960.00 $ 17,600.00 $ 8,880.00 $ 8,720.00 4 $ 2,960.00 $ 17,600.00 $ 11,840.00 $ 5,760.00 5 $ 2,960.00 $ 17,600.00 $ 14,800.00 $ 2,800.00 b Unit of Production Income Satement Balance Sheet Year Amortisation Expenses Cost Accumulated Amortisation Book Value at acquisition $ 17,600.00 1 $ 4,600.00 $ 17,600.00 $ 4,600.00 $ 13,000.00 2 $ 4,600.00 $ 17,600.00 $ 9,200.00 $ 8,400.00 3 $ 2,800.00 $ 17,600.00 $ 12,000.00 $ 5,600.00 4 $ 1,480.00 $ 17,600.00 $ 13,480.00 $ 4,120.00 5 $ 1,320.00 $ 17,600.00 $ 14,800.00 $ 2,800.00 c Double Declining Balance Income Satement Balance Sheet Year Amortisation Expenses Cost Accumulated Amortisation Book Value at acquisition $ 17,600.00 1 $ 7,040.00 $ 17,600.00 $ 7,040.00 $ 10,560.00 2 $ 4,224.00 $ 17,600.00 $ 11,264.00 $ 6,336.00 3 $ 2,534.40 $ 17,600.00 $ 13,798.40 $ 3,801.60 4 $ 1,001.60 $ 17,600.00 $ 14,800.00 $ 2,800.00