Question

Iuary 2, 2018, Jatson Corporation acquired a new was $50,000 with an estimated residual value of $5.000 w machine with an estimated useful life of five years. ated useful life of five years. The cost of the equipmu a-1. Prepare a Tepare a complete depreciation table under the straight-line mein a-2. Prepare a complete deprecia taken in 2018. e a complete depreciation table under the 200 percent declining. a-3. Prepare a come pare a complete depreciation table under the 150 percent declining balar uon expense. Assume that a full year of depreciation was taken in 2018 ethod. Assume that a ful vaar of depreciation was taken in d at was taken in 2018 ng-balance method Asume that a full year of depreciation was balance with a switch to straight-line when it will maximize Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req A3 Prepare a complete depreciation table under the 150 percent declining-balance with a sw maximize depreciation expense. Assume that a full year of nearest whole number.) Ining-balance with a switch to straight-line when it will was taken in 2018. (Round your final answers t Depreciation Accumulated Expense Depreciation Book Value Year 2018 2019 2020 2021 2022

Answer 1

(A1)

Year	Depreciation Expense	Accumulated Depreciation	Book Value
2018	$                               9,000	$                                         9,000	$        41,000
2019	$                               9,000	$                                       18,000	$        32,000
2020	$                               9,000	$                                       27,000	$        23,000
2021	$                               9,000	$                                       36,000	$        14,000
2022	$                               9,000	$                                       45,000	$          5,000

Depreciation per year = ($50000 - $5000)/5 years = $9000

(A2)

Year	Depreciation Expense	Accumulated Depreciation	Book Value
2018	$                             20,000	$                                       20,000	$        30,000
2019	$                             12,000	$                                       32,000	$        18,000
2020	$                               7,200	$                                       39,200	$        10,800
2021	$                               4,320	$                                       43,520	$          6,480
2022	$                               1,480	$                                       45,000	$          5,000

Depreciation rate = 100/Life * 200%

= 100/5 * 200% = 40%

(A3)

Year	Depreciation Expense	Accumulated Depreciation	Book Value
2018	$                             15,000	$                                       15,000	$        35,000
2019	$                             10,500	$                                       25,500	$        24,500
2020	$                               7,350	$                                       32,850	$        17,150
2021	$                               5,145	$                                       37,995	$        12,005
2022	$                               7,005	$                                       45,000	$          5,000

Depreciation rate = 100/Life * 150%

= 100/5 * 200% = 30%