Question

On September 30, 2021, Bricker Enterprises purchased a machine for $212,000. The estimated service life is 10 years with a $21,000 residual value. Bricker records partial-year depreciation based on the number of months in service.

Depreciation (to the nearest dollar) for 2022, using sum-of-the-years'-digits method, would be: (Do not round intermediate calculations.)

Multiple Choice

• $33,859.

• $31,282.

• $37,583.

• $56,700.

Answer 1

Correct answer------------$33,859

Working

Depreciation for 9 months of year 2022 taking 2022 as first year	(191000/55 x 10)/12 x 9	$      26,045.45
Depreciation for 3 months of year 2022 taking 2022 as second year	(191000/55 x 9)/12 x 3	$        7,813.64
Depreciation for 2022		$      33,859.09

.

Sum-of-the-Years'-Digits Method
A	Cost	$ 212,000
B	Residual Value	$ 21,000
C=A - B	Depreciable base	$ 191,000
	Sum of digits with 5 years (5+4+3+2+1)	55