Sum-of-Years' Digits, Declining Balance Cost of Equipment: $750,000 Estimated Salvage Value: $70,000 Estimated Life (yrs): 16...

Question

Question

Sum-of-Years' Digits, Declining Balance Cost of Equipment: $750,000 Estimated Salvage Value: $70,000 Estimated Life (yrs): 16...

Sum-of-Years' Digits, Declining Balance

Cost of Equipment: $750,000

Estimated Salvage Value: $70,000

Estimated Life (yrs): 16

Sold after this many years: 10

Selling price of equipment: $180,000

---------------------

Please fill out the blanks bellow,

A.

Depreciable Cost
Sum of years digits (life)
Sum of years digits (yrs remaining)
Declining balance rate

B.

Depreciation Expense	SYD Method	DB Method
Year 2
Year of sale
At time of sale	SYD Method	DB Method
Accumulated Depreciation
Book Value

C.

ENTRY (SYD Method):
DR Account	CR Account	DR Amount	CR Amount

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

A. Depreciable Cost= $750000-$70000= 680000

Sum of years digit (Life)= 1+2+3+4+5+6+7+8+9+10+11+12+13+14+15+16=136

Sum of years digit (Yrs remaining)= 11+12+13+14+15+16= 81

Declining balance rate= 100/16= 6.25%

B.

Depreciation exp	SYD method	DB Method
Year 2	75000 (750000-70000)x16/136	43945 (703125x6.25%) Note: 750000-6.25%=703125
year of sale (i.e. for year 11)	30000 (750000-70000)x6/136	24584 (393345x6.25%)
At the time of sale	SYD method	DB method
Accumulated Depreciation	575000	356655
Book value	175000	393345

C. Entry under SYD Method:

Year 1 = Depreciation A/c. ---Dr. 80000

to Accumulated Depreciation / fixed assets A/c. 80000

Like the above entry ; each year depreciation entry will be done.

Depreciation schedule for the assets(for 10 years):

Year	Depreciation Base	Remaining Life of machine	Depreciation Fraction	Depreciation Expense
1	680000	16	16/136	80000
2	680000	15	15/136	75000
3	680000	14	14/136	70000
4	680000	13	13/136	65000
5	680000	12	12/136	60000
6	680000	11	11/136	55000
7	680000	10	10/136	50000
8	680000	9	9/136	45000
9	680000	8	8/136	40000
10	680000	7	7/136	35000

Add a comment

Answer 2

Similar Homework Help Questions

Sum-of-Years' Digits, Declining Balance Cost of Equipment: $750,000 Estimated Salvage Value: $70,000 Estimated Life (yrs): 16...

Sum-of-Years' Digits, Declining Balance Cost of Equipment: $750,000 Estimated Salvage Value: $70,000 Estimated Life (yrs): 16 Sold after this many years: 10 Selling price of equipment: $180,000 ----- Please fill out the blanks bellow, A. Depreciable Cost Sum of years digits (life) Sum of years digits (yrs remaining) Declining balance rate B. Depreciation Expense SYD Method DB Method Year 2 Year of sale At time of sale SYD Method DB Method Accumulated Depreciation Book Value C. ENTRY (SYD Method): DR...
I just need the BLUE empty spots please? what is the formula for them? Thanks Sum-of-Years'...

I just need the BLUE empty spots please? what is the formula for them? Thanks Sum-of-Years' Digits & Declining Balance method $680,000 Depreciable Cost Sum of years digits (life) |Sum of years digits (yrs remaining) 136 81 Declining balance rate 6.25 Depreciation Expense Year 2 SYD Method DB Method $75,000 $30,000 Year pf sale At time of sale SYD Method DB Method Accumulated Depreciation Book Value
Straight-Line cost of equipment: $450,000 Estimated Salvage Value: $30,000 Estimated Life (yrs): 17.50 test after this...

Straight-Line cost of equipment: $450,000 Estimated Salvage Value: $30,000 Estimated Life (yrs): 17.50 test after this many years: 4 net future cash flow (@ time of testing): $300,000 fair value (@ time of testing): $275,000 --------------- A. Depreciable Cost Annual Depreciation Expense (SL) B. At time of testing SL Method Accumulated Depreciaton balance Book Value IMPAIRED? (Y/N) Impairment Loss B/S at 12/31 in year of testing SL Method Equipment Accumulated Depreciation $$$,$$$,$$$ $$$,$$$,$$$

Exercise 12-29 Value of Accelerated Depreciation: Sum-of-Years'-Digits (SYD) and Double Declining. Balance (DDB) Methods (LO 12-3)...

Exercise 12-29 Value of Accelerated Depreciation: Sum-of-Years'-Digits (SYD) and Double Declining. Balance (DDB) Methods (LO 12-3) Freedom Corporation acquired a fixed asset for $100,000. Its estimated life at time of purchase was 4 years, with no estimated salvage value. Assume a discount rate of 8% and an income tax rate of 40%. (Use Exhibit 124. Appendix C. TABLE 1 and Appendix C. TABLE 2) Required: 1. What is the incremental present value of the tax benefits resulting from calculating depreciation...
PART Ill INPUT Cost of Equipment Estimated Salvage Value Estimated Life (Yrs) Year of Testing Net...

help please PART Ill INPUT Cost of Equipment Estimated Salvage Value Estimated Life (Yrs) Year of Testing Net Future Cash Flows at 12/31 in year of Testing Fair Value at 12/31 in year of Testing 760,000 00,000 20 2025 500,000 490,000 OUTPUT: SL Method RIGINAL Calculations Depreciable Base Depreciation Expense in first year Years Depreciated AD at 12/31 used for Testing Impairment Testing. this year BV at 12/31 used for Testing Testing Item Impaired? (Yes or No) Impairment Loss A/D...
Straight-Line, Declining-Balance, and Sum-of-the-Years'-Digits Methods A light truck is purchased on January 1 at a cost of $38,730. It is expected to serve for eight years and have a salvage valu...

Straight-Line, Declining-Balance, and Sum-of-the-Years'-Digits Methods A light truck is purchased on January 1 at a cost of $38,730. It is expected to serve for eight years and have a salvage value of $5,690. Calculate the depreciation expense for the first and third years of the truck’s life using the following methods. If required, round your answers to the nearest cent. Depreciation Expense Year 1 Year 3 1. Straight-line $ $ 2. Double-declining-balance $ $ 3. Sum-of-the-years'-digits $ $

Straight-Line, Declining-Balance, and Sum-of-the-Years'-Digits Methods A light truck is purchased on January 1 at a cost...

Straight-Line, Declining-Balance, and Sum-of-the-Years'-Digits Methods A light truck is purchased on January 1 at a cost of $29,830. It is expected to serve for eight years and have a salvage value of $5,430. Calculate the depreciation expense for the first and third years of the truck's life using the following methods. If required, round your answers to the nearest cent. Depreciation Expense Year 1 Year 3 1. Straight-line 2. Double-declining-balance 3. Sum-of-the-years'-digits
Instructions: Using the sum-of-the-years-digit and double-declining balance depreciation methods, compute the depreciation expense for years 2018...

Instructions: Using the sum-of-the-years-digit and double-declining balance depreciation methods, compute the depreciation expense for years 2018 and 2019, and the book value of the machine at the end of 2019 for each of the following two independent cases. Please show your work briefly and have your final answers summarized in the tables Round the final answers in the tables to the nearest dollar when needed. a. Ginger Co. acquired a machine on Jan. 1. 2018, at a cost of $56,000....
Fill in the blanks. $ Inputs: Machine Cost Estimated Salvage Value Estimated Useful Life in Years...

Fill in the blanks. $ Inputs: Machine Cost Estimated Salvage Value Estimated Useful Life in Years 50,000 5,000 $ Depreciation Rate Annual Depreciation Expense Accumulated Depreciation Year Carrying Value 50,000 30,000 18,000 10,800 40% 40% 40% 40% 40% $20,000 $12,000 $7,200 $20,000 32,000 39,200 b) Prepare a depreciation schedule for the following scenario if the company uses the 150% declin linnut b) Prepare a depreciation schedule for the following scenario if the company uses the 150% declining balance method. Inputs:...

Equipment acquired at a cost of $70,000 has an estimated residual value of $4,000 and an...

Equipment acquired at a cost of $70,000 has an estimated residual value of $4,000 and an estimated useful life of 10 years. It was placed into service on October 1 of the current fiscal year, which ends on December 31. If necessary, round your answers to the nearest cent. a. Determine the depreciation for the current fiscal year and for the following fiscal year by the straight-line method. Depreciation Year 1 $ Year 2 $ b. Determine the depreciation for...

Sum-of-Years' Digits, Declining Balance Cost of Equipment: $750,000 Estimated Salvage Value: $70,000 Estimated Life (yrs): 16...

Homework Answers

Add Answer to:
Sum-of-Years' Digits, Declining Balance Cost of Equipment: $750,000 Estimated Salvage Value: $70,000 Estimated Life (yrs): 16...

Post as a guest

Earn Coins