On January 1, 2018 Friendly Farm Company purchased a new machine at a cost of $350,000....
On January 1, 2018 Friendly Farm Company purchased a new machine at a cost of $350,000. The machine has an estimated useful life of 4 years or 100,000 hours and residual value of $30,000. The machine will be used 30,000 hours in year 1, 40,000 hours in year 2, 20,000 hours in year 3 and 10,000 hours in year 4.
Requirements:
IN EXCEL FORMAT- Prepare a depreciation schedule using each of the three methods: Straight line, Units of Production and Double Declining Balance.
Homework Answers
Answers
- Straight Line method
|
A |
Cost |
$ 350,000.00 |
|
B |
Residual Value |
$ 30,000.00 |
|
C=A - B |
Depreciable base |
$ 320,000.00 |
|
D |
Life [in years] |
4 |
|
E=C/D |
Annual SLM depreciation |
$ 80,000.00 |
|
Year |
Book Value |
Depreciation expense |
Ending Book Value |
Accumulated Depreciation |
|
1 |
$ 350,000.00 |
$ 80,000.00 |
$ 270,000.00 |
$ 80,000.00 |
|
2 |
$ 270,000.00 |
$ 80,000.00 |
$ 190,000.00 |
$ 160,000.00 |
|
3 |
$ 190,000.00 |
$ 80,000.00 |
$ 110,000.00 |
$ 240,000.00 |
|
4 |
$ 110,000.00 |
$ 80,000.00 |
$ 30,000.00 |
$ 320,000.00 |
- Units of production
|
A |
Cost |
$ 350,000.00 |
|
B |
Residual Value |
$ 30,000.00 |
|
C=A - B |
Depreciable base |
$ 320,000.00 |
|
D |
Usage |
100,000 |
|
E = C/D |
Depreciation per ….. |
$ 3.200 |
|
Year |
Book Value |
Usage |
Depreciation expense |
Ending Book Value |
Accumulated Depreciation |
|
1 |
$ 350,000.00 |
30,000 |
$ 96,000.00 |
$ 254,000.00 |
$ 96,000.00 |
|
2 |
$ 254,000.00 |
40,000 |
$ 128,000.00 |
$ 126,000.00 |
$ 224,000.00 |
|
3 |
$ 126,000.00 |
20,000 |
$ 64,000.00 |
$ 62,000.00 |
$ 288,000.00 |
|
4 |
$ 62,000.00 |
10,000 |
$ 32,000.00 |
$ 30,000.00 |
$ 320,000.00 |
- Double Declining balance
|
A |
Cost |
$ 350,000.00 |
|
B |
Residual Value |
$ 30,000.00 |
|
C=A - B |
Depreciable base |
$ 320,000.00 |
|
D |
Life [in years] |
4 |
|
E=C/D |
Annual SLM depreciation |
$ 80,000.00 |
|
F=E/C |
SLM Rate |
25.00% |
|
G=F x 2 |
DDB Rate |
50.00% |
|
Year |
Beginning Book Value |
Depreciation rate |
Depreciation expense |
Ending Book Value |
Accumulated Depreciation |
|
1 |
$ 350,000.00 |
50.00% |
$ 175,000.00 |
$ 175,000.00 |
$ 175,000.00 |
|
2 |
$ 175,000.00 |
50.00% |
$ 87,500.00 |
$ 87,500.00 |
$ 262,500.00 |
|
3 |
$ 87,500.00 |
50.00% |
$ 43,750.00 |
$ 43,750.00 |
$ 306,250.00 |
|
4 |
$ 43,750.00 |
$ 13,750.00 |
$ 30,000.00 |
$ 320,000.00 |
Add Answer to:
On January 1, 2018 Friendly Farm Company purchased a new machine
at a cost of $350,000....
On January 1, 2018 Friendly Farm Company purchased a new machine at a cost of $350,000....
On January 1, 2018 Friendly Farm Company purchased a new machine at a cost of $350,000. The machine has an estimated useful life of 4 years or 100,000 hours and residual value of $30,000. The machine will be used 30,000 hours in year 1, 40,000 hours in year 2, 20,000 hours in year 3 and 10,000 hours in year 4. Requirements: Prepare a depreciation schedule using each of the three methods: Straight line, Units of Production and Double Declining Balance.
On January 1, 2018 Friendly Farm Company purchased a new machine at a cost of $350,000....
On January 1, 2018 Friendly Farm Company purchased a new machine
at a cost of $350,000. The machine has an estimated useful life of
4 years or 100,000 hours and residual value of $30,000. The machine
will be used 30,000 hours in year 1, 40,000 hours in year 2, 20,000
hours in year 3 and 10,000 hours in year 4.
Requirements:
Prepare a depreciation schedule using each of the three methods:
Straight line, Units of Production and Double Declining
Balance....
phs and Excel Assighr On January 1, 2018 Friendly Farm Company purchased a new machine at...
phs and Excel Assighr On January 1, 2018 Friendly Farm Company purchased a new machine at a cost of $350,000. The machine has an estimated useful life of 4 years or 100,000 hours and residual value of $30,000. The machine will be used 30,000 hours in year 1, 40,000 hours in year 2, 20,000 hours in year 3 and 10,000 hours in year 4. Requirements: Prepare a depreciation schedule using each of the three methods: Straight line, Units of Production...
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On January 1, 2018, a machine was purchased for $120,000. The machine has an estimated salvage...
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On January 1, 2018 Friendly Farm Company purchased a new machine
at a cost of $350,000. The machine has an estimated useful life of
4 years or 100,000 hours and residual value of $30,000. The machine
will be used 30,000 hours in year 1, 40,000 hours in year 2, 20,000
hours in year 3 and 10,000 hours in year 4.
Requirements:
Prepare a depreciation schedule using each of the three methods:
Straight line, Units of Production and Double Declining
Balance....
phs and Excel Assighr On January 1, 2018 Friendly Farm Company purchased a new machine at a cost of $350,000. The machine has an estimated useful life of 4 years or 100,000 hours and residual value of $30,000. The machine will be used 30,000 hours in year 1, 40,000 hours in year 2, 20,000 hours in year 3 and 10,000 hours in year 4. Requirements: Prepare a depreciation schedule using each of the three methods: Straight line, Units of Production...
K Excel Assignment #1 - Instructions and Te... On January 1, 2018 Friendly Farm Company purchased a new machine at a cost of $350,000. The machine has an estimated useful life of 4 years or 100,000 hours and residual value of $30,000. The machine will be used 30,000 hours in year 1, 40,000 hours in year 2, 20,000 hours in year 3 and 10,000 hours in year 4. Requirements: Prepare a depreciation schedule using each of the three methods: Straight...
The FraserRiver Company has purchased a new piece of factory equipment on January 1, 2018, and wishes to compare three depreciation methods: straight-line, double-declining-balance, and units-of-production The equipment costs $400,000 and has an estimated useful life of four years, or 8,000 hours. At the end of four years, the equipment is estimated to have a residual value of $20,000. Requirements 1. Use Excel to prepare depreciation schedules for straight-line, double-declining-balance, and units-of-production methods. Use cell references from the Data table....
DEPRECIATION METHODS Ten O'Clock, Inc. purchased a vanon Lamar 2018 for SA0000. Estimated life of the van was live years, and its estimated residual value was $90.000. Ten O'Clock uses the straight-line method of depreciation. Prepare the depreciation schedule. Depreciation Expense Book Value at End of Year 2018 2019 2018 2019 Method Straight-line On January 1, 2019, Sapphire Manufacturing Corporation purchased a machine for $10,000,000. The corporation expects to use the machine for 24,000 hours over the next six years....
On January 1, 2018, a machine was purchased for $120,000. The
machine has an estimated salvage value of $9,600 and an estimated
useful life of 5 years. The machine can operate for 120,000 hours
before it needs to be replaced. The company closed its books on
December 31 and operates the machine as follows: 2018, 24,000 hrs;
2019, 30,000 hrs; 2020, 18,000 hrs; 2021, 36,000 hrs; and 2022,
12,000 hrs.
Compute the annual depreciation charges over the machine’s life
assuming...
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