Homework Answers
| WORKING NOTES: 1 | ||||||
| CALCULATION OF THE DEPRECIATION AS PER DOUBLE DECLINE METHOD FOR TRACTOR | ||||||
| Purchase Cost of Tractor | $ 12,000.00 | |||||
| Useful Life = | 8 years | |||||
| Depreciation per year = | $ 1,500.00 | |||||
| (Purchase price / Useful life) | ||||||
| Rate of Depreciation = | ||||||
| Rate of Depreciation = (1 / 8 Years ) | 0.125 or 12.50% | 0.125 | ||||
| (Depreication / Purchase price ) | ||||||
| Double decline deprection rate = 12.50% * 2 = | 25.00% | |||||
| CALCULATION OF DEPRECIATION : | ||||||
| Depreciation for the year 1 = | ||||||
| Purchase Value = | $ 12,000.00 | |||||
| Depreciation @ 25% for the year 1 | $ 3,000.00 | |||||
| Closing balance of Year 1 | $ 9,000.00 | |||||
| Opening Balance of Year 2 | $ 9,000.00 | |||||
| Depreciation @ 25% for the year 2 | $ 2,250.00 | |||||
| Closing balance of Year 2 | $ 6,750.00 | |||||
| Opening Balance of Year 3 | $ 6,750.00 | |||||
| Depreciation @ 25% for the year 3 | $ 1,687.50 | |||||
| Closing balance of Year 3 | $ 5,062.50 | |||||
| Opening Balance of Year 4 | $ 5,062.50 | |||||
| Depreciation @ 25% for the year 4 | $ 1,265.63 | |||||
| Closing balance of Year 4 | $ 3,796.88 | |||||
| Opening Balance of Year 5 | $ 3,796.88 | |||||
| Depreciation @ 25% for the year 5 | $ 949.22 | |||||
| Closing balance of Year 5 | $ 2,847.66 | |||||
| Opening Balance of Year 6 | $ 2,847.66 | |||||
| Depreciation @ 25% for the year 6 | $ 711.91 | |||||
| Closing balance of Year 6 | $ 2,135.74 | |||||
| Opening Balance of Year 7 | $ 2,135.74 | |||||
| Depreciation @ 25% for the year 7 | $ 533.94 | |||||
| Closing balance of Year 7 | $ 1,601.81 | |||||
| Opening Balance of Year 8 | $ 1,601.81 | |||||
| Depreciation @ 25% for the year 8 | $ 400.45 | |||||
| Closing balance of Year 8 | $ 1,201.35 | |||||
| WORKING NOTES: 2 | ||||||
| CALCULATION OF THE DEPRECIATION AS PER SUM OF DIGITS METHOD | ||||||
| Purchase Cost of Machine | $ 12,000.00 | |||||
| Less: Salvage Value | $ 2,000.00 | |||||
| Net Value for Depreciation | $ 10,000.00 | Units | ||||
| Per Units | ||||||
| SUM OF DIGITS = 1+2+3+4+5+6+7+8 =36 | ||||||
| Depreciation for Year 1 = $ 10,000 X 8 /36 = | $ 2,222.22 | |||||
| Depreciation for Year 2 = $ 10,000 X 7 /36 = | $ 1,944.44 | |||||
| Depreciation for Year 3 = $ 10,000 X 6 /36 = | $ 1,666.67 | |||||
| Depreciation for Year 4 = $ 10,000 X 5 /36 = | $ 1,388.89 | |||||
| Depreciation for Year 5 = $ 10,000 X 4 /36 = | $ 1,111.11 | |||||
| Depreciation for Year 6 = $ 10,000 X 3 /36 = | $ 833.33 | |||||
| Depreciation for Year 7 = $ 10,000 X 2 /36 = | $ 555.56 | |||||
| Depreciation for Year 8 = $ 10,000 X 1 /36 = | $ 277.78 | |||||
| ANSWER: | ||||||
| SCHEDULE | DUBLDE DECLINE | Accumulated Depreciation | SUM OF YEAR DIGIT | Accumulated Depreciation | ||
| Year 1 | 3,000.00 | 3,000.00 | $ 2,222.22 | $ 2,222.22 | ||
| Year 2 | 2,250.00 | 5,250.00 | $ 1,944.44 | $ 4,166.67 | ||
| Year 3 | 1,687.50 | 6,937.50 | $ 1,666.67 | $ 5,833.33 | ||
| Year 4 | 1,265.63 | 8,203.13 | $ 1,388.89 | $ 7,222.22 | ||
| Year 5 | 949.22 | 9,152.34 | $ 1,111.11 | $ 8,333.33 | ||
| Year 6 | 711.91 | 9,864.26 | $ 833.33 | $ 9,166.67 | ||
| Year 7 | 533.94 | 10,398.19 | $ 555.56 | $ 9,722.22 | ||
| Year 8 | 400.45 | 10,798.65 | $ 277.78 | $ 10,000.00 | ||
Add Answer to:
I'm struggling to get my psi=2 to work out and I'm unsure how to use the...
Check my work Exercise 18.4 Computing depreciation under various methods. LO 18-2 25 points M. Com...
Check my work Exercise 18.4 Computing depreciation under various methods. LO 18-2 25 points M. Com →CO Hightower Company acquired an asset on January 2, 2019, at a cost of $148,000. The asset's useful life is four years and its salvage value is $48,000. Compute the depreciation expense for each of the first two years, using the straight-line method, the double-declining-balance method, and the sum-of-the-years-digits method. eBook Hint References Complete this question by entering your answers in the tabs below....
Hightower Company acquired an asset on January 2, 2019, at a cost of $154,000. The asset’s...
Hightower Company acquired an asset on January 2, 2019, at a cost of $154,000. The asset’s useful life is four years and its salvage value is $52,000. Compute the depreciation expense for each of the first two years, using the straight-line method, the double-declining-balance method, and the sum-of-the-years’-digits method. Compute the depreciation expense for the first two years, using the straight-line method. STRAIGHT-LINE METHOD Year Acquisition Cost Salvage Value Useful Life Depreciation Accumulated Depreciation 1 years 2 years DOUBLE-DECLINING-BALANCE METHOD...
Preparing Depreciation Schedules Using Various Depreciation Methods Frito Inc. acquired equipment on January 1, 2020, a...
Preparing Depreciation Schedules Using Various Depreciation Methods Frito Inc. acquired equipment on January 1, 2020, at a cost of $12,000 that is estimated to have a useful life of five years and a residual value of $3,000 Required Prepare a depreciation schedule showing annual depreciation expense and year-end accumulated depreciation and book value over the life of the asset using the following methods. a. Straight-line method. b. Sum-of-the-years'-digits method. c. Double-declining-balance method. Straight-line Sum-of-the-years'-digits Double-declining balance b. Sum-of-the-Years'-Digits Depreciation Method...
Preparing Depreciation Schedules Using Various Depreciation Methods Frito Inc. acquired equipment on January 1, 2020, at...
Preparing Depreciation Schedules Using Various Depreciation Methods Frito Inc. acquired equipment on January 1, 2020, at a cost of $12,000 that is estimated to have a useful life of five years and a residual value of $3,000. Required Prepare a depreciation schedule showing annual depreciation expense and year-end accumulated depreciation and book value over the life of the asset using the following methods. a. Straight-line method. b. Sum-of-the-years'-digits method. C. Double-declining-balance method. Straight-line Sum-of-the-years'-digits Double-declining balance c. Double-Declining-Balance Depreciation Method...
Preparing Depreciation Schedules Using Various Depreciation Methods Frito Inc. acquired equipment on January 1, 2020, at...
Preparing Depreciation Schedules Using Various Depreciation Methods Frito Inc. acquired equipment on January 1, 2020, at a cost of $12,000 that is estimated to have a useful life of five years and a residual value of $3,000. Required Prepare a depreciation schedule showing annual depreciation expense and year-end accumulated depreciation and book value over the life of the asset using the following methods. a. Straight-line method. b. Sum-of-the-years'-digits method. c. Double-declining-balance method. Straight-line Sum-of-the-years'-digits Double-declining balance a. Straight-Line Depreciation Method...
Depreciation Methods Gruman Company purchased a machine for $198,000 on January 2, 2019. It made the...
Depreciation Methods Gruman Company purchased a machine for $198,000 on January 2, 2019. It made the following estimates: Service life 5 years or 10,000 hours Production 180,000 units Residual value $ 18,000 In 2019, Gruman uses the machine for 2,000 hours and produces 45,000 units. In 2020, Gruman uses the machine for 1,400 hours and produces 34,000 units. If required, round your final answers to the nearest dollar. Required: Compute the depreciation for 2019 and 2020 under each of the...
Depreciation Methods Gruman Company purchased a machine for $198,000 on January 2, 2016. It made the...
Depreciation Methods Gruman Company purchased a machine for $198,000 on January 2, 2016. It made the following estimates: Service Life 5 years or 10,000 hours Production 180,000 units Residual value $18,000 In 2016, Gruman uses the machine for 1,700 hours and produces 45,000 units. In 2017, Gruman uses the machine for 1,400 hours and produces 30,000 units. If required, round your final answers to the nearest dollar. Required: 1. Compute the depreciation for 2016 and 2017 under each of the...
Depreciation Methods Gruman Company purchased a machine for $220,000 on January 2, 2016. It made the...
Depreciation Methods Gruman Company purchased a machine for $220,000 on January 2, 2016. It made the following estimates: Service life 5 years or 10,000 hours Production 200,000 units Residual value $20,000 In 2016, Gruman uses the machine for 1,800 hours and produces 44,000 units. In 2017, Gruman uses the machine for 1,500 hours and produces 35,000 units. If required, round your final answers to the nearest dollar. Required: 1. Compute the depreciation for 2016 and 2017 under each of the...
Depreciation Methods Gruman Company purchased a machine for $198,000 on January 2, 2016. It made the...
Depreciation Methods Gruman Company purchased a machine for $198,000 on January 2, 2016. It made the following estimates: Service life 5 years or 10,000 hours Production 180,000 units Residual value $ 18,000 In 2016, Gruman uses the machine for 1,700 hours and produces 45,000 units. In 2017, Gruman uses the machine for 1,400 hours and produces 32,000 units. If required, round your final answers to the nearest dollar. Required: 1. Compute the depreciation for 2016 and 2017 under each of...
Depreciation Methods Gruman Company purchased a machine for $198,000 on January 2, 2016. It made the...
Depreciation Methods
Gruman Company purchased a machine for $198,000 on January 2,
2016. It made the following estimates:
Service life
5 years or 10,000 hours
Production
180,000
Residual value
$18,000
In 2016, Gruman uses the machine for 1,700 hours and produces
45,000 units. In 2017, Gruman uses the machine for 1,400 hours and
produces 30,000 units. If required, round your final answers to the
nearest dollar.
Required: 1. Compute the depreciation for 2016 and 2017 under each of the following...
Check my work Exercise 18.4 Computing depreciation under various methods. LO 18-2 25 points M. Com →CO Hightower Company acquired an asset on January 2, 2019, at a cost of $148,000. The asset's useful life is four years and its salvage value is $48,000. Compute the depreciation expense for each of the first two years, using the straight-line method, the double-declining-balance method, and the sum-of-the-years-digits method. eBook Hint References Complete this question by entering your answers in the tabs below....
Preparing Depreciation Schedules Using Various Depreciation Methods Frito Inc. acquired equipment on January 1, 2020, at a cost of $12,000 that is estimated to have a useful life of five years and a residual value of $3,000 Required Prepare a depreciation schedule showing annual depreciation expense and year-end accumulated depreciation and book value over the life of the asset using the following methods. a. Straight-line method. b. Sum-of-the-years'-digits method. c. Double-declining-balance method. Straight-line Sum-of-the-years'-digits Double-declining balance b. Sum-of-the-Years'-Digits Depreciation Method...
Preparing Depreciation Schedules Using Various Depreciation Methods Frito Inc. acquired equipment on January 1, 2020, at a cost of $12,000 that is estimated to have a useful life of five years and a residual value of $3,000. Required Prepare a depreciation schedule showing annual depreciation expense and year-end accumulated depreciation and book value over the life of the asset using the following methods. a. Straight-line method. b. Sum-of-the-years'-digits method. C. Double-declining-balance method. Straight-line Sum-of-the-years'-digits Double-declining balance c. Double-Declining-Balance Depreciation Method...
Preparing Depreciation Schedules Using Various Depreciation Methods Frito Inc. acquired equipment on January 1, 2020, at a cost of $12,000 that is estimated to have a useful life of five years and a residual value of $3,000. Required Prepare a depreciation schedule showing annual depreciation expense and year-end accumulated depreciation and book value over the life of the asset using the following methods. a. Straight-line method. b. Sum-of-the-years'-digits method. c. Double-declining-balance method. Straight-line Sum-of-the-years'-digits Double-declining balance a. Straight-Line Depreciation Method...
Depreciation Methods Gruman Company purchased a machine for $220,000 on January 2, 2016. It made the following estimates: Service life 5 years or 10,000 hours Production 200,000 units Residual value $20,000 In 2016, Gruman uses the machine for 1,800 hours and produces 44,000 units. In 2017, Gruman uses the machine for 1,500 hours and produces 35,000 units. If required, round your final answers to the nearest dollar. Required: 1. Compute the depreciation for 2016 and 2017 under each of the...
Depreciation Methods Gruman Company purchased a machine for $198,000 on January 2, 2016. It made the following estimates: Service life 5 years or 10,000 hours Production 180,000 units Residual value $ 18,000 In 2016, Gruman uses the machine for 1,700 hours and produces 45,000 units. In 2017, Gruman uses the machine for 1,400 hours and produces 32,000 units. If required, round your final answers to the nearest dollar. Required: 1. Compute the depreciation for 2016 and 2017 under each of...
Depreciation Methods
Gruman Company purchased a machine for $198,000 on January 2,
2016. It made the following estimates:
Service life
5 years or 10,000 hours
Production
180,000
Residual value
$18,000
In 2016, Gruman uses the machine for 1,700 hours and produces
45,000 units. In 2017, Gruman uses the machine for 1,400 hours and
produces 30,000 units. If required, round your final answers to the
nearest dollar.
Required: 1. Compute the depreciation for 2016 and 2017 under each of the following...
Most questions answered within 3 hours.
-
1.) In order to appreciably influence the vapor pressure of a
liquid mixture a substance must...
asked 1 minute ago -
Chapter 05, Problem 01
A car travels at a constant speed around a circular track
whose...
asked 2 minutes ago -
Which of the following quotes from a new-product adopter would
signal the need for a firm...
asked 23 minutes ago -
Why are anthropologists interested in studying exchange across
cultures?
asked 17 minutes ago -
3. You may be aware that Wal-Mart is also using RFID
technologies at their stores. Name...
asked 23 minutes ago -
What are the key benefits and limitations of a relational
DBMS?
asked 27 minutes ago -
A medium-sized carrot weighs 64 g and contains 7.0 g of
carbohydrate.
What percent, by mass,...
asked 29 minutes ago -
Please design 3 different and unique brackets consisting of TOP,
FRONT, RIGHT or LEFT views with...
asked 45 minutes ago -
La Niña conditions are forecasted to result in dry conditions in
the spring. You are trying...
asked 53 minutes ago -
The YTM on a 6-month $20 par value zero-coupon bond is 18%, and
the YTM on...
asked 54 minutes ago -
Write In JAVA:
Part 1
The use of computers in education is referred to as
computer-assisted...
asked 1 hour ago -
Show all of your work and use the half-reaction method
for acidic redox reactions.
1.
H2O2aq+...
asked 1 hour ago