Question : 137.Granite Company purchased a machine costing $120,000, terms 1/10, n/30. : 1236328

137.Granite Company purchased a machine costing $120,000, terms 1/10, n/30. The machine was shipped FOB shipping point and freight charges were $2,000. The machine requires special mounting and wiring connections costing $10,000. When installing the machine, $1,300 in damages occurred. Compute the cost recorded for this machine assuming Granite paid within the discount period.    

A.$129,800.

B.$132,100.

C.$130,800.

D.$118,800.

E.$120,100.

138.Wickland Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $87,000. The machine’s useful life is estimated to be 5 years, or 400,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 84,500 units of product. Determine the machines’ second year depreciation under the straight-line method.   

A.$16,900.

B.$16,000.

C.$17,400.

D.$18,379.

E.$20,880.

139.Wickland Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $87,000. The machine’s useful life is estimated to be 5 years, or 400,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 84,500 units of product. Determine the machines’ second year depreciation under the double-declining-balance method.   

A.$16,900.

B.$16,000.

C.$17,400.

D.$18,379.

E.$20,880.

140.Wickland Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $87,000. The machine’s useful life is estimated to be 5 years, or 400,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 84,500 units of product. Determine the machines’ second year depreciation under the units-of-production method.   

A.$16,900.

B.$16,000.

C.$17,400.

D.$18,379.

E.$20,880.

141.Wickland Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $87,000. The machine’s useful life is estimated to be 5 years, or 400,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 84,500 units of product. What journal entry would be needed to record the machines’ second year depreciation under the units-of-production method?   

A.Debit Depletion Expense $16,900; credit Accumulated Depletion $16,900.

B.Debit Depletion Expense $16,000; credit Accumulated Depletion $16,000.

C.Debit Depreciation Expense $16,900; credit Accumulated Depreciation $16,900.

D.Debit Depreciation Expense $16,000; credit Accumulated Depreciation $16,000.

E.Debit Amortization Expense $16,900; credit Accumulated Amortization $16,900.

142.Minor Company installs a machine in its factory at the beginning of the year at a cost of $135,000. The machine’s useful life is estimated to be 5 years, or 300,000 units of product, with a $15,000 salvage value. During its first year, the machine produces 64,500 units of product. Determine the machines’ first year depreciation under the straight-line method.   

A.$27,000.

B.$29,025.

C.$25,800.

D.$23,779.

E.$24,000.

143.Minor Company installs a machine in its factory at the beginning of the year at a cost of $135,000. The machine’s useful life is estimated to be 5 years, or 300,000 units of product, with a $15,000 salvage value. During its first year, the machine produces 64,500 units of product. Determine the machines’ first year depreciation under the double-declining-balance method.   

A.$66,000.

B.$54,000.

C.$24,000.

D.$25,800.

E.$48,000.

144.Minor Company installs a machine in its factory at the beginning of the year at a cost of $135,000. The machine’s useful life is estimated to be 5 years, or 300,000 units of product, with a $15,000 salvage value. During its first year, the machine produces 64,500 units of product. Determine the machines’ first year depreciation under the units-of-production method.   

A.$27,000.

B.$54,000.

C.$24,000.

D.$25,800.

E.$48,000.

145.Minor Company installs a machine in its factory at the beginning of the year at a cost of $135,000. The machine’s useful life is estimated to be 5 years, or 300,000 units of product, with a $15,000 salvage value. During its first year, the machine produces 64,500 units of product. What journal entry would be needed to record the machines’ first year depreciation under the units-of-production method?   

A.Debit Depletion Expense $25,800; credit Accumulated Depletion $25,800.

B.Debit Depletion Expense $29,025; credit Accumulated Depletion $29,025.

C.Debit Depreciation Expense $29,025; credit Accumulated Depreciation $29,025.

D.Debit Depreciation Expense $25,800; credit Accumulated Depreciation $25,800.

E.Debit Amortization Expense $24,000; credit Accumulated Amortization $24,000.

146.Fortune Drilling Company acquires a mineral deposit at a cost of $5,900,000. It incurs additional costs of $600,000 to access the deposit, which is estimated to contain 2,000,000 tons and is expected to take 5 years to extract. Compute the depletion expense for the first year assuming 418,000 tons were mined.   

A.$1,233,100.

B.$1,358,500.

C.$1,300,000.

D.$1,180,000.

E.$1,280,000.