Homework Answers
Solution:
| Straight line method | |||||
| Year | Acquisition cost | Salvage value | Useful life (Years) | Annual depreciation | Accumulated Depreciation |
| 2019 | $633,000.00 | $43,000.00 | 4 | $147,500.00 | $147,500.00 |
| 2020 | $633,000.00 | $43,000.00 | 4 | $147,500.00 | $295,000.00 |
| 2021 | $633,000.00 | $43,000.00 | 4 | $147,500.00 | $442,500.00 |
| Computation of Depreciation - Sum of digit of years | |||||||
| Year | Asset Cost | Depreciation Base | Remaining life of asset | Depreciation fraction | Depreciation Expense | Accumulated Depreciation | Ending Book Value |
| Purchase Date | $633,000.00 | ||||||
| 2019 | $590,000.00 | 4 | 4/10 | $236,000 | $236,000 | $397,000 | |
| 2020 | $590,000.00 | 3 | 3/10 | $177,000 | $413,000 | $220,000 | |
| 2021 | $590,000.00 | 2 | 2/10 | $118,000 | $531,000 | $102,000 | |
| Depreciation Schedule - Double Declining Balance Method | ||||||
| Year | Asset Cost | Book Value | Depreciation Rate (25%*2) | Depreciation Expense for the year | Accumulated Depreciation | Ending Book Value |
| Purchase Date | $633,000 | |||||
| 2019 | $633,000 | 50% | $316,500 | $316,500 | $316,500 | |
| 2020 | $316,500 | 50% | $158,250 | $474,750 | $158,250 | |
| 2021 | $158,250 | 50% | $79,125 | $553,875 | $79,125 | |
| Total | $553,875 | |||||
Analyze:
Book value of asset at the end of 2020 using double declining method = $158,250
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P M Gmail Youtube Maps er 18 Homework Problem 18.2A Using different depreciation methods and comparing...
On January 4, 2019, Columbus Company purchased new equipment for $693,000 that had a useful life...
On January 4, 2019, Columbus Company purchased new equipment for
$693,000 that had a useful life of four years and a salvage value
of $53,000.
Required:
Prepare a schedule showing the annual depreciation and end-of-year
accumulated depreciation for the first three years of the asset’s
life under the straight-line method, the sum-of-the-years’-digits
method, and the double-declining-balance method.
Analyze:
If the double-declining balance method is used to compute
depreciation, what would be the book value of the asset at the end...
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On January 4, 2019, Columbus Company purchased new equipment for
$693,000 that had a useful life of four years and a salvage value
of $53,000.
Required:
Prepare a schedule showing the annual depreciation and end-of-year
accumulated depreciation for the first three years of the asset’s
life under the straight-line method, the sum-of-the-years’-digits
method, and the double-declining-balance method.
Analyze:
If the double-declining balance method is used to compute
depreciation, what would be the book value of the asset at the end...
Preparing Depreciation Schedules Using Various Depreciation Methods Frito Inc. acquired equipment on January 1, 2020, at a cost of $12,000 that is estimated to have a useful life of five years and a residual value of $3,000 Required Prepare a depreciation schedule showing annual depreciation expense and year-end accumulated depreciation and book value over the life of the asset using the following methods. a. Straight-line method. b. Sum-of-the-years'-digits method. c. Double-declining-balance method. Straight-line Sum-of-the-years'-digits Double-declining balance b. Sum-of-the-Years'-Digits Depreciation Method...
Preparing Depreciation Schedules Using Various Depreciation Methods Frito Inc. acquired equipment on January 1, 2020, at a cost of $12,000 that is estimated to have a useful life of five years and a residual value of $3,000. Required Prepare a depreciation schedule showing annual depreciation expense and year-end accumulated depreciation and book value over the life of the asset using the following methods. a. Straight-line method. b. Sum-of-the-years'-digits method. C. Double-declining-balance method. Straight-line Sum-of-the-years'-digits Double-declining balance c. Double-Declining-Balance Depreciation Method...
Preparing Depreciation Schedules Using Various Depreciation Methods Frito Inc. acquired equipment on January 1, 2020, at a cost of $12,000 that is estimated to have a useful life of five years and a residual value of $3,000. Required Prepare a depreciation schedule showing annual depreciation expense and year-end accumulated depreciation and book value over the life of the asset using the following methods. a. Straight-line method. b. Sum-of-the-years'-digits method. c. Double-declining-balance method. Straight-line Sum-of-the-years'-digits Double-declining balance a. Straight-Line Depreciation Method...
Check my work Exercise 18.4 Computing depreciation under various methods. LO 18-2 25 points M. Com →CO Hightower Company acquired an asset on January 2, 2019, at a cost of $148,000. The asset's useful life is four years and its salvage value is $48,000. Compute the depreciation expense for each of the first two years, using the straight-line method, the double-declining-balance method, and the sum-of-the-years-digits method. eBook Hint References Complete this question by entering your answers in the tabs below....
P11-11. (Depreciation for Partial Periods—SL, Act., SYD, and DDB) (LO 1, 2) On January 1, 2015, a machine was purchased for $90,000. The machine has an estimated salvage value of $6,000 and an estimated useful life of 5 years. The machine can operate for 100,000 hours before it needs to be replaced. The company closed its books on December 31 and operates the machine as follows: 2015, 20,000 hours; 2016, 25,000 hours; 2017, 15,000 hours; 2018, 30,000 hours; and 2019,...
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Instructions: Using the sum-of-the-years-digit and double-declining balance depreciation methods, compute the depreciation expense for years 2018 and 2019, and the book value of the machine at the end of 2019 for each of the following two independent cases. Please show your work briefly and have your final answers summarized in the tables Round the final answers in the tables to the nearest dollar when needed. a. Ginger Co. acquired a machine on Jan. 1. 2018, at a cost of $56,000....
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