Question

On January 1, 2021, the Allegheny Corporation purchased equipment for $199,000. The estimated service life of the equipment is 10 years and the estimated residual value is $12,000. The equipment is expected to produce 248,000 units during its life.

Required:
Calculate depreciation for 2021 and 2022 using each of the following methods.

3. Assume instead the equipment was purchased on October 1, 2021. Calculate depreciation for 2021 and 2022 using each of the two methods. Partial-year depreciation is calculated based on the number of months the asset is in service. (Do not round intermediate answers and round your answers to the nearest whole dollar amount.)

	2021 2022 Sum-of-the-years’ digits One hundred fifty percent declining balance

Answer 1

Answer :. 2021. 2022

SUM OF YEARS DIGITS = $17000. $30600

ONE HUNDRED FIFTY

PERCENT DECLINING =. $ 14925. $ 27611

Explanation;

methad Digits Sum ot yeans Ams Sum ot the disks Lellet) SS Depreciable base Cast sAsetKesidual value $199000-12co $187000 15toox Depreciati on s the year 202) TASsumng Eguement Puxthased n octobes,1,2021 34000 Depreciabon Farm octabey a-vecrber 34c0Px 200 DePoeciabon fo 9222 Fam Jan p Decombers 137000x9 7$30600

Ore humdred fity Rncent decimmg reths Step- ls yeas userd life 100 /09ea Depaeciahen te BesimiYe besk elue Depeciaten rte DePaecaton 252 199000 7o 1s1. x 6monthi 12monh 4925 Depreciation 2022 8egiming ae DePaeciation Deeciation Charged ate (9gc0-14925)x I57 2761