Please let me know how to do all the three methods.
Solution:
Depreciation Expense | |||
Year | Straight-Line | Units-of-Activity Method | Double-Declining-Balance Method |
Year 1 | $ 60,900 | $ 73,080 | $ 132,800 |
Year 2 | $ 60,900 | $ 56,637 | $ 44,267 |
Year 3 | $ 60,900 | $ 52,983 | $ 5,633 |
Totals | $ 182,700 | $ 182,700 | $ 182,700 |
Working:
1) Straight Line Method = (199200-16500) / 3 = $ 60,900
2) Units of Activity Method:
Year | Units-of-Activity Method | Calculation |
1 | $ 73,080 | (199200-16500)/6300*2520 |
2 | $ 56,637 | (199200-16500)/6300*1953 |
3 | $ 52,983 | (199200-16500)/6300*1827 |
Total | $ 182,700 |
3) Double-Declining-Balance Method
Year | Opening Balance | Depreciation | Accumulated Depreciation | Closing Balance | Depreciation Calculation |
1 | $ 199,200 | $ 132,800 | $ 132,800 | $ 66,400 | 199200*1/3*2 |
2 | $ 66,400 | $ 44,267 | $ 177,067 | $ 22,133 | 66400*1/3*2 |
3 | $ 22,133 | $ 5,633 | $ 182,700 | $ 16,500 | 22133-16500 |
Please let me know how to do all the three methods. Comparing Three Depreciation Methods Dexter...
Comparing three depreciation methods Dexter Industries purchased packaging equipment on January 8 for $90,000. The equipment was expected to have a useful life of three years, or 18,000 operating hours, and a residual value of $4,500. The equipment was used for 7,200 hours during Year 1, 5,400 hours in Year 2, and 5,400 hours in Year 3 Required: 1. Determine the amount of depreciation expense for the three years ending December 31, by (a) the straight-line method, (b) the units-of-activity...
Comparing three depreciation methods Dexter Industries purchased packaging equipment on January for $72,000. The equipment was expected to have a useful life of three years or 18.000 operating hours, and a residual value of $4,500. The equipment was used for 7,600 hours during Year 1, 6,000 hours in Year 2, and 4,400 hours in Year 3 Requiredi 1. Determine the amount of depreciation expense for the three years ending December by (a) the straight-line method, (b) the units-of-activity method, and...
please help me solve this Print item Comparing three depreciation methods Dexter Industries purchased packaging equipment on January 8 for $72,000. The equipment was expected to have a useful life of three years, or 18,000 operating hours, and a residual value of $4,500. The equipment was used for 7.500 hours during Year 1, 6,000 hours in Year 2, and 4400 hours in Year 3. Required: 1. Determine the amount of depreciation expense for the three years ending December 31, by...
Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $245,200. The equipment was expected to have a useful life of three years, or 7,500 operating hours, and a residual value of $20,200. The equipment was used for 3,000 hours during Year 1, 2,325 hours in Year 2, and 2,175 hours in Year 3. Required: 1. Determine the amount of depreciation expense for the three years ending December 31, Year 1, Year 2, Year 3, by (a)...
Comparing three depreciation methods Dexter Industries purchased packaging equipment on January 8 for $86,400. The equipment was expected to have a useful life of three years, or 21,600 operating hours, and a residual value of $5,400. The equipment was used for 8,640 hours during Year 1, 6,480 hours in Year 2, and 6,480 hours in Year 3. Required: 1. Determine the amount of depreciation expense for the three years ending December 31, by (a) the straight-line method, (b) the units-of-...
1: straight preciation, $22,500 PR 9-2A Comparing three depreciation methods Obj. 2 Dexter Industries purchased packaging equipment on January 8 for $72,000. The equipment was expected to have a useful life of three years, or 18,000 operating hours, and a residual value of $4,500. The equipment was used for 7.600 hours during Year 1, 6,000 hours in Year 2, and 4,400 hours in Year 3. EXCEL TEMPLATE Instructions 1. Determine the amount of depreciation expense for the three years ending...
Comparing three depreciation methods Dexter Industries purchased packaging equipment on January 8 for $72,000. The equipment was expected to have a useful life of three years, or 18,000 operating hours, and a residual value of $4,500. The equipment was used for 7,600 hours during Year 1, 6,000 hours in Year 2, and 4,400 hours in Year 3. Required: 1. Determine the amount of depreciation expense for the three years ending December 31, by (a) the straight-line method, (b) the units-of-activity...
Chp Homework Show Me How Calculator Printem Comparing the depreciation methods Dexter Industries purchased packaging equipment on January 8 for $72,000. The equipment was expected to have a useful life of three years, or 18,000 operating hours, and a residual value of $3,600. The coment was for 7,200 hours during a 1.5.000 hours in War 2 and 5.400 hours in Year Required the double-declining-balance method. 1. Determine the amount of depreciation expense for the three years ending December 31, by...
Show Me How Calculator apter 9 - Assignment 3 eBook Comparing three depreciation methods Instructions Depreciation Expense Final Questions LI Х Instructions Dexter Industries purchased packaging equipment on January 8 for $86,900. The equipment was expected to have a useful life of three years, or 20,000 operating hours, and a residual value of $6,900. The equipment was used for 8,640 hours during Year 1,6,710 hours in Year 2, and 4,650 hours in Year 3. Required: 1. Determine the amount of...
Comparing three depreciation methods Dexter Industries purchased packaging equipment on January 8 for $90,000. The equipment was expected to have a useful life of three years, or 22,500 operating hours, and a residual value of $4,500. The equipment was used for 9,000 hours during Year 1, 6,750 hours in Year 2, and 6,750 hours in Year 3. Required: 1. Determine the amount of depreciation expense for the three years ending December 31, by (a) the straight-line method, (b) the units-of-activity...