Question

Please put in excel spreadsheet and please show formula and answers. Thank you.

TRA PRACTICE QUIZ WITH WORKED-OUT SOLUT IONS Prepare a depreciation schedule using straight-line depreciation for the following: Cost of truck Residual value $ 2,000 Life If the truck were bought on February 3, what would the depreciation expense be in the first year? eed mare practico? Try this ptna Practice Qulz (check $20,000 unizer), Worked-out Solutions be tound in Appendix B at in the Interactive Chapter 3 years nd of teat PS EXTRA PRACTICE OUIZ WITH WORKED-OUT SOLUTIONS From the following facts prepare a depreciation schedule: Need more practice? Try this ctra Practice Quiz (check gures in the Interactive Chapter Machine cost $30,000 $ 2,000 Residual value Expected to produce 56,000 units over its expected life rganizer). Worked-out Solutions an be found in Appendix B at nd of text. 2012 2013 2014 2015 2016 Units produced 1,000 6,000 4,000 2,000 2,500 -за EXTRA PRACTICE QUIZ WITH WORKED-OUT SOLUTIONS Prepare a depreciation schedule for three years for the followin Need more practice? Try this Extra Practice Quiz (check figures in the Interactive Chapter Organizer). Worked-out ㎝be found in Appendix B at end of text g: Cost of machine: $31,000 Rate: 40% (this is twice the straight-line rate) Estimated life: 5 years Residual olutions value: $1,000 LU 17-40 EXTRA PRACTICE QUIZ WITH WORKED-OUT SOLUTIONS In 2015, Rancho Corporation bought semiconductor eed more practice? Try this xtra Practice Quiz (check gures in the Interactive Chapfer ganiror). Worked-out Solutions an be found in Appendix B at nd of text equipment for $90,000. MACRS, what is the depreciation expense in year 3? What would depreciation be the first year for a wa $900,000? 2/ What wou plant that cou

Answer 1

Answer LU17-1a
Depreciation per year using straight line method = [cost - residual value]/Life in years = [$20000-$2000]/3 years = $6000
Depreciation shedule
Year	Cost	Current year depreciation	Cumulative depreciation	Net Book value
1	$20,000.00	$6,000.00	$6,000.00	$14,000.00
2	$20,000.00	$6,000.00	$12,000.00	$8,000.00
3	$20,000.00	$6,000.00	$18,000.00	$2,000.00
Depreciation expense for first year = [$6000/365 days] * 332 days = $5458
Answer LU17-2a
Per unit depreciation = [Cost - residual value]/expected units to be produced over life
Per unit depreciation = [$30000 - $2000]/56000 units = $0.50 per unit
Depreciation shedule
Year	Cost	Current year depreciation	Cumulative depreciation	Net Book value
2012	$30,000.00	$500.00	$500.00	$29,500.00
2013	$30,000.00	$3,000.00	$3,500.00	$26,500.00
2014	$30,000.00	$2,000.00	$5,500.00	$24,500.00
2015	$30,000.00	$1,000.00	$6,500.00	$23,500.00
2016	$30,000.00	$1,250.00	$7,750.00	$22,250.00
Answer LU17-3a
Depreciation per year = Beginning book value of machine * depreciation rate i.e.40%
Depreciation shedule
Year	Cost	Current year depreciation	Cumulative depreciation	Net Book value
1	$31,000.00	$12,400.00	$12,400.00	$18,600.00
2	$31,000.00	$7,440.00	$19,840.00	$11,160.00
3	$31,000.00	$4,464.00	$24,304.00	$6,696.00