Question

Chapter 10 eBook Show Me How E Calculator L 1 PE 10018 2. PE 10.02 ALGO Straight-Line Depreciation Equipment acquired at the beginning of the year at a cost of 5470,000 has an estimated residus volue of $62,000 and an estimated useful life of five years, Determine the following The depreciable cost b. The straight-line rate c. The annual straight-line depreciation 3. TMM 1002 4. PE 10.05. ALGO 5. EX.10.08 BLANKSHEET 6. EX 100% ALGO 7. PE 10.02B EXCEL ALGO 8. PE 10 008 EXCEL ALGO 9. EX 10.10 EXCEL ALGO 10. PR 10.02. ALGO

Answer 1

1	Equipment Cost	470,000
	Residual Value	62,000
	Estimated Useful Life	5
	Depreciable Cost	408,000
	Straight Line Rate	20%
	Annual Straight Line Depreciation	81,600
2	Truck Cost	180,000
	Residual Value	9,000
	Estimated Useful Life Miles	30,000
	Driven miles	2,100
	Depreciable Cost	171,000
	Deprciation Rate	5.70
	Units of Activity Depreciation for the year	11,970
3	Tractor Cost	710,000
	Residual Value	215,500
	Estimated Useful Life Hours	43,000
	Operated Hours	4,480
	Depreciable Cost	494,500
	Deprciation Rate	11.50
	Units of Activity Depreciation for the year	51,520
4	Equipment Cost	494,800
	Residual Value	40,900
	Useful Life	3
	Estimated Useful Life Hours	5,100
	Operated Hours 1	2,040
	Operated Hours 2	1,581
	Operated Hours 3	1,479
	Depreciable Cost	453,900
	Deprciation Rate SLM	33.33%
	Deprciation Rate Double D M	66.67%
1		Depreciation Expenses
	Year	Straight Line Method	Units of Activity Method	Double Declining Method
	1	151,300	181,560	302,600
	2	151,300	140,709	100,867
	3	151,300	131,631	33,622
	Total	453,900	453,900	437,089
2	Double Declining Method yeilds the highest depreciation for Year 1.
3	Straight Line & Units of Activity Method yeilds the highest depreciation for three years.