Waterway Company purchases equipment on January 1, Year 1, at a cost of $582,000. The asset is expected to have a service life of 12 years and a salvage value of $52,380.
Compute the amount of depreciation for each of Years 1 through 3 using the straight-line depreciation method. (Round answers to 0 decimal places, e.g. 5,125.)
Depreciation for Year 1 |
$enter a dollar amount rounded to 0 decimal places |
|
---|---|---|
Depreciation for Year 2 |
$enter a dollar amount rounded to 0 decimal places |
|
Depreciation for Year 3 |
$enter a dollar amount rounded to 0 decimal places |
Compute the amount of depreciation for each of Years 1 through 3 using the sum-of-the-years'-digits method.
Depreciation for Year 1 |
$enter a dollar amount |
|
---|---|---|
Depreciation for Year 2 |
$enter a dollar amount |
|
Depreciation for Year 3 |
$enter a dollar amount |
Compute the amount of depreciation for each of Years 1 through 3 using the double-declining-balance method. (Round depreciation rate to 2 decimal places, e.g. 15.84%. Round answers to 0 decimal places, e.g. 45,892.)
Depreciation for Year 1 |
$enter a dollar amount rounded to 0 decimal places |
|
---|---|---|
Depreciation for Year 2 |
$enter a dollar amount rounded to 0 decimal places |
|
Depreciation for Year 3 |
$enter a dollar amount rounded to 0 decimal places |
1) | ||||
Annual Depreciation = (Cost Of The Asstes- Salvage Value)/ Life Of The Asset | ||||
= $582000-52380/12 years | ||||
= $44135 per year | ||||
Year | Depreciation Expenses | |||
1 | $ 44,135 | |||
2 | $ 44,135 | |||
3 | $ 44,135 | |||
2) | Sum of digit method | |||
Depreciable amount = $582000-52380 =$529620 | ||||
Year | sum of digit | Deprecition | ||
a | b | c=529620*b/78 | ||
1 | 12 | $ 81,480 | ||
2 | 11 | $ 74,690 | ||
3 | 10 | $ 67,900 | ||
4 | 9 | $ 61,110 | ||
5 | 8 | $ 54,320 | ||
6 | 7 | $ 47,530 | ||
7 | 6 | $ 40,740 | ||
8 | 5 | $ 33,950 | ||
9 | 4 | $ 27,160 | ||
10 | 3 | $ 20,370 | ||
11 | 2 | $ 13,580 | ||
12 | 1 | $ 6,790 | ||
78 | ||||
3) | ||||
Double Declining Balance Method | ||||
Useful Life | 12 | Years | ||
Cost | $ 5,82,000 | |||
Residual Value | $ 52,380 | |||
Depreciable Value | $ 5,29,620 | |||
Depreciation Rate | 16.67% | |||
Year | Depreciation Expenses | Acc Depreciation | Book Value End Of Year | |
1 | $ 97,019 | $ 97,019 | $ 4,84,981 | |
2 | $ 80,846 | $ 1,77,866 | $ 4,04,134 | |
3 | $ 67,369 | $ 2,45,235 | $ 3,36,765 | |
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$enter a dollar amount rounded to 0 decimal places
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