1. Identify for each of the three major methods of calculating depreciation (Straight-Line, Double Declining Balance,...
1. Identify for each of the three major methods of calculating depreciation (Straight-Line, Double Declining Balance, Units of Production), a company that would likely use that method. Why would that company choose that specific method?
Homework Answers
Ans : Straight line method of depreciation method is usually used by most of companies that estimates that asset would be for the life of the asset estimated. This method is used for most of the assets
Double declining method is used for the assets that are used more often compared to the normal usage of the asset based on actual estimated life, in such cases depreciation is provided double the amount of depreciation for the asset. this is used.
Units of production method , this method is used for the assets that lasts based on production of units. life of such assets are estimated based on estimated total units during the life of asset rather than normal estimated life.
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1. Identify for each of the three major methods of
calculating depreciation (Straight-Line, Double Declining Balance,...
Explain the 3 different methods of accounting for Depreciation. (Straight Line, Double Declining Balance, Units of Output...
Explain the 3 different methods of accounting for Depreciation. (Straight Line, Double Declining Balance, Units of Output or Production) Comment on the definition, calculation, journal entries, etc. of each method
Explain the difference between the straight line, double declining balance and the unit-of-production depreciation methods. Document...
Explain the difference between the straight line, double declining balance and the unit-of-production depreciation methods. Document the method used for each of the three companies (Pepsi,Coca-Cola and Dr Pepper Snapple).
1. Straight-Line Depreciation Year Expense 2015 $ 2016 2017 2018 2019 2. Double-declining balance (Round answers...
1. Straight-Line Depreciation Year Expense 2015 $ 2016 2017 2018 2019 2. Double-declining balance (Round answers to the nearest whole number, when appropriate.) Depreciation Year Expense 2015 $ 2016 2017 2018 2019 Depreciation Methods On January 2, 2015, Roth, Inc. purchased a laser cutting machine to be used in the fabrication of a part for one of its key products. The machine cost $125,000, and its estimated useful life was four years or 1,200,000 cuttings, after which it could be...
The double-declining balance method is applied by (1) calculating the asset's straight-line depreciation rate, (2) doubling...
The double-declining balance method is applied by (1) calculating the asset's straight-line depreciation rate, (2) doubling it, (3) subtracting residual value from cost, and (4) multiplying the rate times the cost. * O True False
Compare and contrast the following three depreciation methods: straight-line depreciation, double-declining depreciation, and modified accelerated depreciation
Compare and contrast the following three depreciation methods: straight-line depreciation, double-declining depreciation, and modified accelerated depreciation
Straight-Line Depreciation Rates Convert each of the following estimates of useful life to a straight-line depreciation...
Straight-Line Depreciation Rates Convert each of the following estimates of useful life to a straight-line depreciation rate, stated as a percentage, assuming that the residual value of the fixed asset is to be ignored: (a) 4 years, (b) 8 years, (c) 10 years, (d) 16 years, (e) 25 years, (f) 40 years, (g) 50 years. If required, round your answers to two decimal places. Years Percentage 4 years 8 years 10 years 16 years 25 years 40 years 50 years...
Riverbed Company changed depreciation methods in 2017 from double-declining-balance to straight-line. Depreciation prior to 2017 under...
Riverbed Company changed depreciation methods in 2017 from
double-declining-balance to straight-line. Depreciation prior to
2017 under double-declining-balance was $82,300, whereas
straight-line depreciation prior to 2017 would have been $45,800.
Riverbed’s depreciable assets had a cost of $252,700 with a $43,200
salvage value, and an 8-year remaining useful life at the beginning
of 2017.
Prepare the 2017 journal entry related to Riverbed’s depreciable
assets (Equipment). (Credit account titles are
automatically indented when amount is entered. Do not indent
manually. If no...
Grouper Company changed depreciation methods in 2017 from double-declining-balance to straight-line. Depreciation prior to 2017 under...
Grouper Company changed depreciation methods in 2017 from
double-declining-balance to straight-line. Depreciation prior to
2017 under double-declining-balance was $97,100, whereas
straight-line depreciation prior to 2017 would have been $49,600.
Grouper’s depreciable assets had a cost of $254,300 with a $42,000
salvage value, and an 8-year remaining useful life at the beginning
of 2017.
Prepare the 2017 journal entry related to Grouper’s depreciable
assets (Equipment). (Credit account titles are
automatically indented when amount is entered. Do not indent
manually. If no...
Can you please answer for all three, Straight-line, Units-of-production, and Double-declining-balance Assume Organic Ice Cream Company,...
Can you please answer for all three, Straight-line,
Units-of-production, and Double-declining-balance
Assume Organic Ice Cream Company, Inc., bought a new ice cream production kit (pasteurizer/homogenizer, cooler, aging vat, freezer, and filling machine) at the beginning of the year at a cost of $28,000. The estimated useful life was four years, and the residual value was $1,840. Assume that the estimated productive life of the machine was 10,900 hours. Actual annual usage was 4,360 hours in Year 1; 3,270 hours in...
When an asset generates revenue evenly over time the appropriate depreciation method is: Straight-line Double declining...
When an asset generates revenue evenly over time the appropriate depreciation method is: Straight-line Double declining balance Units of production Some other method
1. Straight-Line Depreciation Year Expense 2015 $ 2016 2017 2018 2019 2. Double-declining balance (Round answers to the nearest whole number, when appropriate.) Depreciation Year Expense 2015 $ 2016 2017 2018 2019 Depreciation Methods On January 2, 2015, Roth, Inc. purchased a laser cutting machine to be used in the fabrication of a part for one of its key products. The machine cost $125,000, and its estimated useful life was four years or 1,200,000 cuttings, after which it could be...
The double-declining balance method is applied by (1) calculating the asset's straight-line depreciation rate, (2) doubling it, (3) subtracting residual value from cost, and (4) multiplying the rate times the cost. * O True False
Straight-Line Depreciation Rates Convert each of the following estimates of useful life to a straight-line depreciation rate, stated as a percentage, assuming that the residual value of the fixed asset is to be ignored: (a) 4 years, (b) 8 years, (c) 10 years, (d) 16 years, (e) 25 years, (f) 40 years, (g) 50 years. If required, round your answers to two decimal places. Years Percentage 4 years 8 years 10 years 16 years 25 years 40 years 50 years...
Riverbed Company changed depreciation methods in 2017 from
double-declining-balance to straight-line. Depreciation prior to
2017 under double-declining-balance was $82,300, whereas
straight-line depreciation prior to 2017 would have been $45,800.
Riverbed’s depreciable assets had a cost of $252,700 with a $43,200
salvage value, and an 8-year remaining useful life at the beginning
of 2017.
Prepare the 2017 journal entry related to Riverbed’s depreciable
assets (Equipment). (Credit account titles are
automatically indented when amount is entered. Do not indent
manually. If no...
Grouper Company changed depreciation methods in 2017 from
double-declining-balance to straight-line. Depreciation prior to
2017 under double-declining-balance was $97,100, whereas
straight-line depreciation prior to 2017 would have been $49,600.
Grouper’s depreciable assets had a cost of $254,300 with a $42,000
salvage value, and an 8-year remaining useful life at the beginning
of 2017.
Prepare the 2017 journal entry related to Grouper’s depreciable
assets (Equipment). (Credit account titles are
automatically indented when amount is entered. Do not indent
manually. If no...
Can you please answer for all three, Straight-line,
Units-of-production, and Double-declining-balance
Assume Organic Ice Cream Company, Inc., bought a new ice cream production kit (pasteurizer/homogenizer, cooler, aging vat, freezer, and filling machine) at the beginning of the year at a cost of $28,000. The estimated useful life was four years, and the residual value was $1,840. Assume that the estimated productive life of the machine was 10,900 hours. Actual annual usage was 4,360 hours in Year 1; 3,270 hours in...
When an asset generates revenue evenly over time the appropriate depreciation method is: Straight-line Double declining balance Units of production Some other method
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