Question

just need DETAILED help with part c. check figures are above the question. really really stuck.

UITnet MyCampus Library ISC A DOBE CONNECT L. My Home Microsoft Word. Individual Core it on its first trip. It is estimated that the truck has a five year useful life and a residual value of $9,000. Land's End uses the straight line method to depreciate all of its vehicles. Prepare the entry to record the purchase of truck, insurance, and gas, and record the depreciation at year-end, December 31, 2020. Exercise 9-6 Alternative depreciation methods-straight-line, double-declining-balance, and units-of-production 102 CHECK FIGURES: b. 2019 = $37,550, c. 2020 = $36,890 On January 2, 2018, Archer Company, a skateboard manufacturer, installed a computerized machine in its factory at a cost of $150.200. The machine's useful life was estimated at four years or a total of 186,000 units with a $20,000 trade in value. Archer Company's year Page 663 end is December 31. Calculate depreciation for each year of the machine's estimated useful life under each of the following methods: a. Straight-line b. Double declining balance c. Units-of-production, assuming actual units produced were: Year 2018 2019 2020 2021 Units 38.400 41.300 52.700 57.000 Exercise 9.7 Calculating depreciation CLO2 CHECK FIGURE: b. $122.080 Jackal Energy purchased a transport truck on January 1, 2020, for $305.200 cash. Its estimated useful life is five years or 320,000 kilometres with an estimated residual value of $52.400. be here to search DLL

Answer 1

Straight Line Method
Year	Book Value year start	Depreciation Life	Depreciation Exp.	Acc. Dep	Book Value year end
2018	$150,200	4	$32,550	$32,550	$117,650
2019	$117,650	4	$32,550	$65,100	$85,100
2020	$85,100	4	$32,550	$97,650	$52,550
2021	$52,550	4	$32,550	$130,200	$20,000
Depreciation per year (150,200 - 20,000)/4 years = 32,550
Double Declining Balance Method
Year	Book Value year start	Depreciation Rate	Depreciation Exp.	Acc. Dep	Book Value year end
2018	$150,200	50.00%	$75,100	$75,100	$75,100
2019	$75,100	50.00%	$37,550	$112,650	$37,550
2020	$37,550	46.74%	$17,550	$130,200	$20,000
2021	$20,000			$130,200	$20,000
Units of Production Method
Year	Book Value year start	Units or Production	Depreciation Exp.	Acc. Dep	Book Value year end
2018	$150,200	38,400	$26,880	$26,880	$123,320
2019	$123,320	41,300	$28,910	$55,790	$94,410
2020	$94,410	52,700	$36,890	$92,680	$57,520
2021	$57,520	57,000	$37,520	$130,200	$20,000
		189,400
Depreciation per units (150,200 - 20,000)/186,000 = 0.70