Question

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. The machine has an estimated salvage value of $3,500 at the end of its 7-year useful life. The depreciation adjustment is done at the end of every calendar year. Depreciation expense Depreciation expense Book value as of Depreciation method for 2018 for 2019 Dec 31, 2019 Sum-of-the-years-digits Double declining balance b. Bender Co. acquired a equipment on May 1, 2018, at a cost of $56,000. The machine has an estimated salvage value of $3,500 at the end of its 7-year useful life. The depreciation adjustment is done at the end of every calendar year. Depreciation expense Depreciation expense Book value as of Depreciation method for 2018 for 2019 Dec 31, 2019 Sum-of-the-years-digits Double declining balance

Answer 1

A B C Question-a 1 Cost of Machine Purchased on $56,000 2 1/1/2018 3 4 Salvage value $3,500 5 Useful life 7 6 Sum of the years digits Double Declinig Depreciation Book Value $0.00 $56,000.00 $16,000.00 $40,000.00 $11,428.57 $28,571.43 7 Period Year Depreciation $0.00 Book Value 8 1/1/2018 $56,000.00 0 12/31/2018 $13,125.00 $42,875.00 1 10 $11,250.00 $31,625.00 2 12/31/2019 11 12 LO co

A C D E F Question b 13 14 Cost of Machine $56,000 15 Purchased on 5/1/2018 16 Salvage value 17 Useful life $3,500 7 18 Sum of year digit 19 Remaining Remainig life Deprecaition Deprecaition Expense $8,750 Вook 20 Year of machine Fraction Value Base 21 77/28 66/28 $52,500 $52,500 $43,750 1 22 $11,875 $31,875 23 24, Double Declinig Balance 25 Depreciation Percentage Book Вook Deprecaition Expense $10,666.67 26 Value Value Year 27 1$56,000.00 2 $45,333.33 $45,333.33 28.57% 28 $12,952.38 $32,380.95 28.57% 29 30 $7,500 Depreciation Expense 31 14.29% 28.57% 32 33 Declinign Balance Double Declinig 34 Percentage Balance 35 L

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