Using sum of the years-digits-method compute the depreciation of equipment during the third year of its eight years est...

Question

Question

Using sum of the years-digits-method compute the depreciation of equipment during the third year of its eight years est...

Using sum of the years-digits-method compute the depreciation of equipment during the third year of its eight years estimated life. The brandnew cost of the equipment is 20,000 and has a salvage value of 2,500

business economics

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Depreciable amount = Cost-Salvage Value = 20000-2500 = 17500

Life is 8 years so sum of years = 1+2+3+4+5+6+7+8 = 36

During the third year remaining life of the asset is 8-2 = 6 years

Depreciation = Remaining life/ sum of years * Depreciable amount = 6/36 * 17500 = 17500/6 = 2916.67

Hence 2916.67 is answer

Add a comment

Answer 2

Similar Homework Help Questions

Instructions: Using the sum-of-the-years-digit and double-declining balance depreciation methods, compute the depreciation expense for years 2018...

Instructions: Using the sum-of-the-years-digit and double-declining balance depreciation methods, compute the depreciation expense for years 2018 and 2019, and the book value of the machine at the end of 2019 for each of the following two independent cases. Please show your work briefly and have your final answers summarized in the tables Round the final answers in the tables to the nearest dollar when needed. a. Ginger Co. acquired a machine on Jan. 1. 2018, at a cost of $56,000....
POWS WILL Instructions: Using the sum-of-the-years'-digit and double-declining balance depreciation methods, compute the depreciation expense for...

POWS WILL Instructions: Using the sum-of-the-years'-digit and double-declining balance depreciation methods, compute the depreciation expense for years 2018 and 2019, and the book value of the machine at the end of 2019 for each of the following two independent cases. Please show your work briefly and have your final answers summarized in the tables, Round the final answers in the tables to the nearest dollar when needed. a. Ginger Co. acquired a machine on Jan. 1, 2018, at a cost...
During 2016 and 2017, Faulkner Manufacturing used the sum-of-the-years’-digits (SYD) method of depreciation for its depreciable...

During 2016 and 2017, Faulkner Manufacturing used the sum-of-the-years’-digits (SYD) method of depreciation for its depreciable assets, for both financial reporting and tax purposes. At the beginning of 2018, Faulkner decided to change to the straight-line method for both financial reporting and tax purposes. A tax rate of 40% is in effect for all years. For an asset that cost $26,200 with an estimated residual value of $1,200 and an estimated useful life of 10 years, the depreciation under different...

ULT WULL ULRUSWS is incorrect Instructions: Using the sum-of-the-years-digit and double-declining balance depreciation methods, compute the...

ULT WULL ULRUSWS is incorrect Instructions: Using the sum-of-the-years-digit and double-declining balance depreciation methods, compute the depreciation expense for years 2018 and 2019, and the book value of the machine at the end of 2012 for each of the following two independent cases. Please show your work briefly and have your final answers summarized in the tables. Round the final answers in the tables to the nearest dollar when needed. a. Ginger Co. acquired a machine on Jan. 1, 2018,...
Sum-of-Years' Digits, Declining Balance Cost of Equipment: $750,000 Estimated Salvage Value: $70,000 Estimated Life (yrs): 16...

Sum-of-Years' Digits, Declining Balance Cost of Equipment: $750,000 Estimated Salvage Value: $70,000 Estimated Life (yrs): 16 Sold after this many years: 10 Selling price of equipment: $180,000 ----- Please fill out the blanks bellow, A. Depreciable Cost Sum of years digits (life) Sum of years digits (yrs remaining) Declining balance rate B. Depreciation Expense SYD Method DB Method Year 2 Year of sale At time of sale SYD Method DB Method Accumulated Depreciation Book Value C. ENTRY (SYD Method): DR...
Sum-of-Years' Digits, Declining Balance Cost of Equipment: $750,000 Estimated Salvage Value: $70,000 Estimated Life (yrs): 16...

Sum-of-Years' Digits, Declining Balance Cost of Equipment: $750,000 Estimated Salvage Value: $70,000 Estimated Life (yrs): 16 Sold after this many years: 10 Selling price of equipment: $180,000 --------------------- Please fill out the blanks bellow, A. Depreciable Cost Sum of years digits (life) Sum of years digits (yrs remaining) Declining balance rate B. Depreciation Expense SYD Method DB Method Year 2 Year of sale At time of sale SYD Method DB Method Accumulated Depreciation Book Value C. ENTRY (SYD Method): DR...

During 2016 and 2017, Faulkner Manufacturing used the sum-of-the-years’-digits (SYD) method of depreciation for its depreciable...

During 2016 and 2017, Faulkner Manufacturing used the sum-of-the-years’-digits (SYD) method of depreciation for its depreciable assets, for both financial reporting and tax purposes. At the beginning of 2018, Faulkner decided to change to the straight-line method for both financial reporting and tax purposes. A tax rate of 40% is in effect for all years. For an asset that cost $24,000 with an estimated residual value of $1,000 and an estimated useful life of 10 years, the depreciation under different...
During 2016 and 2017, Faulkner Manufacturing used the sum-of-the-years'-digits (SYD) method of depreciation for its depreciable...

During 2016 and 2017, Faulkner Manufacturing used the sum-of-the-years'-digits (SYD) method of depreciation for its depreciable assets, for both financial reporting and tax purposes. At the beginning of 2018, Faulkner decided to change to the straight-line metho for both financial reporting and tax purposes. A tax rate of 40% is in effect for all years. For an asset that cost $20,200 with an estimated residual value of $1,200 and an estimated useful life of 10 years, the depreciation under different...
Straight-Line, Declining-Balance, and Sum-of-the-Years'-Digits Methods A light truck is purchased on January 1 at a cost of $38,730. It is expected to serve for eight years and have a salvage valu...

Straight-Line, Declining-Balance, and Sum-of-the-Years'-Digits Methods A light truck is purchased on January 1 at a cost of $38,730. It is expected to serve for eight years and have a salvage value of $5,690. Calculate the depreciation expense for the first and third years of the truck’s life using the following methods. If required, round your answers to the nearest cent. Depreciation Expense Year 1 Year 3 1. Straight-line $ $ 2. Double-declining-balance $ $ 3. Sum-of-the-years'-digits $ $

During 2019 and 2020, Faulkner Manufacturing used the sum-of-the-years-digits (SYD) method of depreciation for its depreciable...

During 2019 and 2020, Faulkner Manufacturing used the sum-of-the-years-digits (SYD) method of depreciation for its depreciable assets, for both financial reporting and tax purposes. At the beginning of 2021, Faulkner decided to change to the straight-line method for both financial reporting and tax purposes. A tax rate of 25% is in effect for all years. For an asset that cost $15,100 with an estimated residual value of $1100 and an estimated useful life of 10 years, the depreciation under different...

Using sum of the years-digits-method compute the depreciation of equipment during the third year of its eight years est...

Homework Answers

Add Answer to:
Using sum of the years-digits-method compute the depreciation of equipment during the third year of its eight years est...

Post as a guest

Earn Coins

Instructions: Using the sum-of-the-years-digit and double-declining balance depreciation methods, compute the depreciation expense for years 2018...

POWS WILL Instructions: Using the sum-of-the-years'-digit and double-declining balance depreciation methods, compute the depreciation expense for...

During 2016 and 2017, Faulkner Manufacturing used the sum-of-the-years’-digits (SYD) method of depreciation for its depreciable...

ULT WULL ULRUSWS is incorrect Instructions: Using the sum-of-the-years-digit and double-declining balance depreciation methods, compute the...

Sum-of-Years' Digits, Declining Balance Cost of Equipment: $750,000 Estimated Salvage Value: $70,000 Estimated Life (yrs): 16...

Sum-of-Years' Digits, Declining Balance Cost of Equipment: $750,000 Estimated Salvage Value: $70,000 Estimated Life (yrs): 16...

During 2016 and 2017, Faulkner Manufacturing used the sum-of-the-years’-digits (SYD) method of depreciation for its depreciable...

During 2016 and 2017, Faulkner Manufacturing used the sum-of-the-years'-digits (SYD) method of depreciation for its depreciable...

Straight-Line, Declining-Balance, and Sum-of-the-Years'-Digits Methods A light truck is purchased on January 1 at a cost of $38,730. It is expected to serve for eight years and have a salvage valu...

During 2019 and 2020, Faulkner Manufacturing used the sum-of-the-years-digits (SYD) method of depreciation for its depreciable...

Using sum of the years-digits-method compute the depreciation of equipment during the third year of its eight years est...

Homework Answers

Add Answer to: Using sum of the years-digits-method compute the depreciation of equipment during the third year of its eight years est...

Post as a guest

Earn Coins

Add Answer to:
Using sum of the years-digits-method compute the depreciation of equipment during the third year of its eight years est...