Question

5. Captain America's new shield was purchased on January 1, 2018 for $95,000. Its estimated useful life is 5 years or taking 180,000 bullets. Estimated residual value is $5,000. The actual numbers of bullets taken are as follows Year 2018 2019 2020 2021 2022 # of Bullets Taken 40,000 50,000 40,000 30,000 20,000 Please fill out the below depreciation schedules. Straight-Line (C-RVIN Sum-of-the-Years' Digits [(C-RV).R?N (N +1 )/2 Exp. Acc. Dep. BV Yr Exp. Acc. Dep. BV 2 3 4 Double-Declining Activity [(C-RV)/U]Units Used Yr Exp. Acc. Dep.BV Exp. Acc. Dep. BV 2

Answer 1

	Depreciation Schedule (Straight Line method)
Year	depreciation Expense ($)	Accumulated Depreciation ($)	Asset Book value ($)
2018	18000	18000	77000
2019	18000	36000	59000
2020	18000	54000	41000
2021	18000	72000	23000
2022	18000	90000	5000
Depreciation under straight line method	Cost of asset-Relizable value/ life of asset
	95000-5000/5
	18000
	Depreciation Schedule (Some of the year's digit method)
Year	depreciation Expense ($)	Accumulated Depreciation ($)	Asset Book value ($)
2018	31666.67	31666.67	63333.33
2019	25333.33	57000.00	38000.00
2020	19000.00	76000.00	19000.00
2021	12666.67	88666.67	6333.33
2022	6333.33	95000.00	0.00
Depreciation	(Cost-Reliazable value)*Remaining Life/useful life (useful life+1)/2
	Statement showing calculation of depreciation
Year	Depreciation
2018	(95000-5000)*5/5(5+1)/2	31666.67
2019	(95000-5000)*4/5(5+1)/2	25333.33
2020	(95000-5000)*3/5(5+1)/2	19000.00
2021	(95000-5000)*2/5(5+1)/2	12666.67
2022	(95000-5000)*1/5(5+1)/2	6333.33
	Depreciation Schedule (Double declining method)
Year	depreciation Expense ($)	Accumulated Depreciation ($)	Asset Book value ($)
2018	38000	38000	57000
2019	22800	60800	34200
2020	13680	74480	20520
2021	8208	82688	12312
2022	4925	87613	7387
Depreciation under Double Declining	2/estimated useful life* book value at the beginning of the year
	2/5*95000
	38000
* calculated for other years using the same formula
	Depreciation Schedule (Activity method)
Year	depreciation Expense ($)	Accumulated Depreciation ($)	Asset Book value ($)
2018	20000	20000	75000
2019	25000	45000	50000
2020	20000	65000	30000
2021	15000	80000	15000
2022	10000	90000	5000
Depreciation per unit	Cost of asset-salvage value/ total units of production
	95000-5000/180000
	0.5
Depreciation per year	Depreciation per unit * no of units in the year
Year	depreciation Expense ($)
2018	40000*.50	20000
2019	50000*.50	25000
2020	40000*.50	20000
2021	30000*.50	15000
2022	20000*.50	10000