Chapter 3
Long-Term Assets
110
AP-19A (
3
)
A newmachine for a bottle factory was purchased in February 2013 for $900,000. The machine
has an estimated production capacity of 1,500,000 bottles and no residual value. The machine
produced the following number of bottles over the past four years: 2013 – 420,000 bottles,
2014 – 405,000 bottles, 2015 – 390,000 bottles, 2016 – 315,000 bottles. Assuming the company
uses the units-of-production method, complete the following table.
Year
Cost of Long-Term
Asset
Depreciation
Expense
Accumulated
Depreciation
To Date
Net Book Value
AP-20A (
3
4
)
On December 31, 2016, a company had the following information reported in their balance
sheet.
Equipment
$400,000
Accumulated Depreciation—Equipment
(320,000)
The equipment was donated to a charity. The equipment was valued at its current net book
value. Prepare the journal entry to record the donation.
Date
Account Title and Explanation
Debit
Credit
