Question

Coy Food Chicken brought equpment on January 2, 2018, for $33,000. The equipment was expected to remain in service for four years and to operate for 6.750 hours. At the end of the equipment's see, Crispy estimates that is real value will be 56.000 Thement operated for 675 hours the first yow, 2,005 rows the second yes, 2.700 hours the thurd year and 1.350 hours the fourth year Requirement 1. Prepare a schedule of depreciation expertise, accumulated depreciation and book vake year for the end the depreciation methods straightints of production and double declining balance. Show your computations. Note: The depreciation schedules must be prepared Begin by preparing a depreciation schede using the stage line method Straight Line Depreciation Schedule Depreciation for the Year As Depreciable Depreciation Accumulated Cou Le Depreciation Value 33.000 5 27 000 6750 27 000 790 13500 27.000 20250 12.750

Answer 1

Depreciation Accumulated Expense Depreciation = Book Value * per unit Unit of production Depreciation Schedule Depreciation for the year Depreciation Number of Date Asset Cost Units 1-2-2018 $33,000 12-31-2018 $4 675 12-31-2019 4 2,025 12-31-2020 4 2,700 12-31-2021 4 1,350 * * = $2,700 8,100 10,800 5,400 $2,700 $10,800 $21,600 $27,000 $33,000 $30,300 $22,200 $11,400 $6,000 * = *