Homework Answers
Acquisition cost = $1000000
Salvage value = 50000
Half year convention, under this the first year, half year depreciation is recordamount are allocated.
Useful life = 8 years
A. Straight line Depreciation
Each year depreciation is same
Depreciation amount = Depreciable value / useful life
Depreciable value = cost - salvage value
Depreciable value = 1000000 - 50000 = 950000
Depreciation amount = 950000 / 8 = 118750
Schedule
|
Year |
Computation |
Depreciation expenses |
Accumulated depreciation |
Book Value |
|
2020 |
(950000 / 8)/2 |
59375 |
59375 |
940625 |
|
2021 |
950000/8 |
118750 |
178125 |
821875 |
|
2022 |
950000/8 |
118750 |
296875 |
703125 |
|
2023 |
950000/8 |
118750 |
415625 |
584375 |
|
2024 |
950000/8 |
118750 |
534375 |
465625 |
|
2025 |
950000/8 |
118750 |
653125 |
346875 |
|
2026 |
950000/8 |
118750 |
771875 |
228125 |
|
2027 |
950000/8 |
118750 |
890625 |
109375 |
|
2028 |
(950000 / 8)/2 |
59375 |
950000 |
50000 |
B. Double Decline Balance method ( switch over to straight line in year 2026)
.
Double Decline rate (%) = straight line rate * 2
straight line rate = 100 / 8 = 12.5%
Double Decline rate (%) = 12.5 * 2 = 25%
Schedule
|
Year |
Computation |
Depreciation expenses |
Accumulated depreciation |
Book Value |
|
2020 |
(1000000*25%)/2 |
125000 |
125000 |
875000 |
|
2021 |
875000* 25% |
218750 |
343750 |
656250 |
|
2022 |
656250*25% |
164063 |
507813 |
492188 |
|
2023 |
492188 *25% |
123047 |
630859 |
369141 |
|
2024 |
369141*25% |
92285 |
723145 |
276855 |
|
2025 |
276855 * 25% |
69214 |
792358 |
207642 |
|
2026 |
( 207642 - 50000 ) / 2 |
78821 |
871179 |
128821 |
|
2027 |
( 207642 - 50000 ) / 2 |
78821 |
950000 |
50000 |
* In 2026, switch to straight line.
Book value at end of 2025 = $207642
Salvage value
Remaining useful life = 2
Depreciation amount in both year =( 207642 - 50000 ) / 2= 78821
Add Answer to:
1. In 2020, Johnson Co purchased a machine used for manufacturing for $1,000,000. This machine had...
Problem 9-09A Culver Corporation purchased machinery on January 1, 2022, at a cost of $288,000. The...
Problem 9-09A Culver Corporation purchased machinery on January 1, 2022, at a cost of $288,000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of $33,800. The company is considering different depreciation met Prepare separate depreciation schedules for the machinery using the straight-line method, and the declining-balance method using double the straight-line rate. STRAIGHT-LINE DEPRECIATION Computation Years Depreciable Cost x Depreciation Rate = Annual Depreciation Expense 2022 End...
Problem 9-09A Ayayai Corporation purchased machinery on January 1, 2022, at a cost of $252,000. The...
Problem 9-09A Ayayai Corporation purchased machinery on January 1, 2022, at a cost of $252,000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of $30,200. The company is considering different depreciation methods that could be used for financial reporting purposes. Prepare separate depreciation schedules for the machinery using the straight-line method, and the declining-balance method using double the straight-line rate. STRAIGHT-LINE DEPRECIATION Computation End of Year Depreciable...
Sarasota Corporation purchased machinery on January 1, 2022, at a cost of $280,000. The estimated useful...
Sarasota Corporation purchased machinery on January 1, 2022, at a cost of $280,000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of $33,000. The company is considering different depreciation methods that could be used for financial reporting purposes. Prepare separate depreciation schedules for the machinery using the straight-line method, and the declining-balance method using double the straight-line rate. STRAIGHT-LINE DEPRECIATION Computation Years Depreciable Cost x Depreciation Rate...
Sarasota Cerporation purchased machinery on January 1, 2022, at a cost of $280,000. The estimated useful...
Sarasota Cerporation purchased machinery on January 1, 2022, at a cost of $280,000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of $33,000. The company is considering different depreciation methods that could be used for financial reporting purposes. Prepare separate depreciation schedules for the machinery using the straight-line method, and the declining-balance method using double the straight-line rate. STRAIGHT-LINE DEPRECIATION Computation End of Year Years Depreciable Cost...
Current Attempt in Progress Marigold Corporation purchased machinery on January 1, 2022, at a cost of...
Current Attempt in Progress Marigold Corporation purchased machinery on January 1, 2022, at a cost of $266,000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of $31,600. The company is considering different depreciation methods that could be used for financial reporting purposes Prepare separate depreciation schedules for the machinery using the straight-line method, and the declining-balance method using double the straight-line rate. STRAIGHT-LINE DEPRECIATION Computation End of...
Question One: 30 marks Jefry's Boss purchased a small delivery truck on January 1, 2020. Cost...
Question One: 30 marks Jefry's Boss purchased a small delivery truck on January 1, 2020. Cost $55,000 Expected residual value $4,000 Estimated useful life in years 5 years Estimated useful life in miles 100,000 miles Instructions: Prepare the deprecation schedule using: 1- Straight line method 2- Double Declining method 1- Straight Line (15 marks) Year Depreciable Cost Annual Expense Book Value Accumulated Depreciation 2020 2021 2022 2023 2024 2- Double Declining Method ( 15 marks) Year Depreciable Cost Annual Expense...
Grouper Corporation purchased machinery on January 1, 2022, at a cost of $264,000. The estimated useful...
Grouper Corporation purchased machinery on January 1, 2022, at a cost of $264,000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of $31,400. The company is considering different depreciation methods that could be used for financial reporting purposes. Prepare separate depreciation schedules for the machinery using the straight-line method, and the declining-balance method using double the straight-line rate. STRAIGHT-LINE DEPRECIATION Computation Years Depreciable Cost * Depreciation Rate...
Sheffield Corporation purchased machinery on January 1, 2022, at a cost of $282,000. The estimated useful...
Sheffield Corporation purchased machinery on January 1, 2022, at a cost of $282,000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of $33,200. The company is considering different depreciation methods that could be used for financial reporting purposes. Prepare separate depreciation schedules for the machinery using the straight-line method, and the declining-balance method using double the straight-line rate. STRAIGHT-LINE DEPRECIATION Computation Years Depreciable Cost X Depreciation Rate...
Concord Corporation purchased machinery on January 1, 2022, at a cost of $286,000. The estimated useful...
Concord Corporation purchased machinery on January 1, 2022, at a cost of $286,000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of $33,600. The company is considering different depreciation methods that could be used for financial reporting purposes. Prepare separate depreciation schedules for the machinery using the straight-line method, and the declining-balance method using double the straight-line rate. STRAIGHT-LINE DEPRECIATION Computation Аccun Annual Depreciation Expense Years Depreciable...
Problem 9-09A Monty Corporation purchased machinery on January 1, 2022, at a cost of $270,000. The estimated useful...
Problem 9-09A Monty Corporation purchased machinery on January 1, 2022, at a cost of $270,000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of $32,000. The company is considering different depreciation methods that could be used for financial reporting purposes. Prepare separate depreciation schedules for the machinery using the straight-line method, and the declining-balance method using double the straight-line rate. STRAIGHT-LINE DEPRECIATION Accumulated Years Depreciable Cost *...
Problem 9-09A Culver Corporation purchased machinery on January 1, 2022, at a cost of $288,000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of $33,800. The company is considering different depreciation met Prepare separate depreciation schedules for the machinery using the straight-line method, and the declining-balance method using double the straight-line rate. STRAIGHT-LINE DEPRECIATION Computation Years Depreciable Cost x Depreciation Rate = Annual Depreciation Expense 2022 End...
Problem 9-09A Ayayai Corporation purchased machinery on January 1, 2022, at a cost of $252,000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of $30,200. The company is considering different depreciation methods that could be used for financial reporting purposes. Prepare separate depreciation schedules for the machinery using the straight-line method, and the declining-balance method using double the straight-line rate. STRAIGHT-LINE DEPRECIATION Computation End of Year Depreciable...
Sarasota Corporation purchased machinery on January 1, 2022, at a cost of $280,000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of $33,000. The company is considering different depreciation methods that could be used for financial reporting purposes. Prepare separate depreciation schedules for the machinery using the straight-line method, and the declining-balance method using double the straight-line rate. STRAIGHT-LINE DEPRECIATION Computation Years Depreciable Cost x Depreciation Rate...
Sarasota Cerporation purchased machinery on January 1, 2022, at a cost of $280,000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of $33,000. The company is considering different depreciation methods that could be used for financial reporting purposes. Prepare separate depreciation schedules for the machinery using the straight-line method, and the declining-balance method using double the straight-line rate. STRAIGHT-LINE DEPRECIATION Computation End of Year Years Depreciable Cost...
Current Attempt in Progress Marigold Corporation purchased machinery on January 1, 2022, at a cost of $266,000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of $31,600. The company is considering different depreciation methods that could be used for financial reporting purposes Prepare separate depreciation schedules for the machinery using the straight-line method, and the declining-balance method using double the straight-line rate. STRAIGHT-LINE DEPRECIATION Computation End of...
Question One: 30 marks Jefry's Boss purchased a small delivery truck on January 1, 2020. Cost $55,000 Expected residual value $4,000 Estimated useful life in years 5 years Estimated useful life in miles 100,000 miles Instructions: Prepare the deprecation schedule using: 1- Straight line method 2- Double Declining method 1- Straight Line (15 marks) Year Depreciable Cost Annual Expense Book Value Accumulated Depreciation 2020 2021 2022 2023 2024 2- Double Declining Method ( 15 marks) Year Depreciable Cost Annual Expense...
Grouper Corporation purchased machinery on January 1, 2022, at a cost of $264,000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of $31,400. The company is considering different depreciation methods that could be used for financial reporting purposes. Prepare separate depreciation schedules for the machinery using the straight-line method, and the declining-balance method using double the straight-line rate. STRAIGHT-LINE DEPRECIATION Computation Years Depreciable Cost * Depreciation Rate...
Sheffield Corporation purchased machinery on January 1, 2022, at a cost of $282,000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of $33,200. The company is considering different depreciation methods that could be used for financial reporting purposes. Prepare separate depreciation schedules for the machinery using the straight-line method, and the declining-balance method using double the straight-line rate. STRAIGHT-LINE DEPRECIATION Computation Years Depreciable Cost X Depreciation Rate...
Concord Corporation purchased machinery on January 1, 2022, at a cost of $286,000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of $33,600. The company is considering different depreciation methods that could be used for financial reporting purposes. Prepare separate depreciation schedules for the machinery using the straight-line method, and the declining-balance method using double the straight-line rate. STRAIGHT-LINE DEPRECIATION Computation Аccun Annual Depreciation Expense Years Depreciable...
Problem 9-09A Monty Corporation purchased machinery on January 1, 2022, at a cost of $270,000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of $32,000. The company is considering different depreciation methods that could be used for financial reporting purposes. Prepare separate depreciation schedules for the machinery using the straight-line method, and the declining-balance method using double the straight-line rate. STRAIGHT-LINE DEPRECIATION Accumulated Years Depreciable Cost *...
Most questions answered within 3 hours.
-
Cranium, Inc., purchases term papers from an overseas supplier
under a continuous review system. The average...
asked 1 hour ago -
1- What is the freezing point of pure water (in degrees
Celsius)?
2-
he molar mass...
asked 2 hours ago -
Determine the direction of the force that will act on the charge
in each of the...
asked 2 hours ago -
You purchase your daily coffee at the Chemist’s Coffeehouse and
have a choice of two cups:...
asked 5 hours ago -
Which of the following pairs of chemicals could be used to make
a buffer solution?
A.)...
asked 5 hours ago -
Problem 16-51 Sales
Activity Variance (LO 16-3)Odessa, Inc., reports the following
information concerning operations for the...
asked 5 hours ago -
Pictured on the right are thee point charges Q1 = 18.4 μC, Q2 =
-30.6 μC,...
asked 5 hours ago -
A graduate student is conducting research in psychology and
needs to obtain the IQ scores of...
asked 6 hours ago -
R2.84: There are 2 defective products in a production lot of 10.
An inspector randomly selected...
asked 7 hours ago -
Consider the following equilibrium system: COCl2(g) CO(g) +
Cl2(g) A 10.00 L evacuated flask is filled...
asked 8 hours ago -
1) What are the two distinct steps that one needs to perform
when developing a data...
asked 8 hours ago -
2) Write a C++ program that uses a class called “Degree” to
obtain the trigonometric
values...
asked 9 hours ago