Homework Answers
![Date of purchase Cost Salvage Value Usefule Life (Years) 30-Jun-20 $42,000 $12,000 6 Declining Balance Depreciation Method: It is a method in which depreciation is charged declines over the time. It means that depreciation in earlier year is charged higher as compared to later year. The justification for charging depreciation at higher rate is that the assets are more productive when they are new and their productivity declines as they become old Formula (Accelerator x Straight Line Rate) x Book Value of Asset. Straight Line Rate (100/ Useful Life) Straight Line Rate-100/6 = 16.67% Ans a: Depreciation schedule using 200 % declining balance method Cost/Opening Year Written down Closing DepreciationAccumulated Written Computation for the yea Depreciation Down Value Value 2020 2021 $42,000 [(200% x 16.67%)x $42000)/2] $34,999 | [(200% x 16.67%)x $34999] $7,001 $11,669 $7,001 $34,999 $18,670 $23,330 Note Depreciation for the year 2020 is charged for 6 months only as the asset is purchased on 30th June 2020 Depreciation Expense for 2021 is $ 11669 Ans b: Depreciation schedule using 150 % declining balance method Cost/Opening Year Written down Closing DepreciationAccumulated Written Computation for the year DepreciationDown Value Value 2020 2021 $42,000 | [((150% x 16.67%)x $42000)/2] $36,749 | [(15096 x 16.67%)x $36749] $5,251 $9,189 $5,251 $36,749 $14,440 $27,560 Note Depreciation for the year 2020 is charged for 6 months only as the asset is purchased on 30th June 2020 Depreciation Expense for 2021 is $ 9189](http://img.homeworklib.com/questions/81088190-4000-11ea-8095-0fb84c3ea04d.png?x-oss-process=image/resize,w_560)
![Ans c: Depreciation schedule using straight line method: straight line depreciation = (Initial Cost-Salvage Value) / Estimated usefule life Straight line Depreciation: [($42000-$12000/6] = $5000 Closing DepreciationAccumulated Written for the year DepreciationDown Value $2,500 $39,500 Cost/Opening Year Written down Computation Value $2,500 $5,000 $42,000(s42000-$12000)/6)/2] 2020 2021 [(S42000-$12000)/6] Note: Depreciation for the year 2020 is charged for 6 months only as the asset is purchased on 30th June 2020 Depreciation Expense for 2021 is $ 5000](http://img.homeworklib.com/questions/81ace990-4000-11ea-ac1f-bb218791bc66.png?x-oss-process=image/resize,w_560)
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of-the- pobedeclining-balane method: Compute the 이 Company paro Sum er on June 30, 2020, for $42.000....
PART B) Compute 2020 depreciation expense using the double-declining-balance method, assuming the machinery was purchased on...
PART B) Compute 2020 depreciation expense
using the double-declining-balance method, assuming the machinery
was purchased on October 1, 2020.
Wildhorse Company purchased machinery on January 1, 2020, for $94,400. The machinery is estimated to have a salvage value of $9,440 after a useful life of 8 years. (a) Compute 2020 depreciation expense using the double-declining-balance method. Depreciation expense $
BE9.6 (L02) Depreciation information for Corales Company is given in BE9.4. Assuming the declining- balance depreciation...
BE9.6 (L02) Depreciation information for Corales Company is given in BE9.4. Assuming the declining- balance depreciation rate is double the straight-line rate, compute annual depreciation for the first and second years under the declining-balance method. BE9.4 (LO 2) Corales Company acquires a delivery truck at a cost of $38,000. The truck is expected to have a salvage value of $6,000 at the end of its 4-year useful life. Compute annual depreciation expense for the first and second years using the...
Bridgeport Company purchased a delivery truck for $27,000 on January 1, 2020. The truck has an...
Bridgeport Company purchased a delivery truck for $27,000 on
January 1, 2020. The truck has an expected salvage value of $1,500,
and is expected to be driven 102,000 miles over its estimated
useful life of 10 years. Actual miles driven were 12,800 in 2020
and 14,300 in 2021.
Compute depreciation expense for 2020 and 2021 using (1) the
straight-line method, (2) the units-of-activity method, and (3) the
double-declining-balance method. (Round depreciation
cost per unit to 2 decimal places, e.g. 0.50...
On July 1, 2020, Swifty Company purchased for $6,120,000 snow-making equipment having an estimated useful life...
On July 1, 2020, Swifty Company purchased for $6,120,000 snow-making equipment having an estimated useful life of 5 years with an estimated salvage value of $255,000. Depreciation is taken for the portion of the year the asset is used. Complete the form below by determining the depreciation expense and year-end book values for 2020 and 2021 using the 1. sum-of-the-years'-digits method. 2. double-declining balance method. 2020 2021 Sum-of-the-Years'-Digits Method Equipment Less: Accumulated Depreciation $6,120,000 $6,120,000 Year-End Book Value $6,120,000 $6,120,000...
On July 1, 2020, Blue Spruce Company purchased for $3,060,000 snow-making equipment having an estimated useful...
On July 1, 2020, Blue Spruce Company purchased for $3,060,000 snow-making equipment having an estimated useful life of 5 years with an estimated salvage value of $127,500. Depreciation is taken for the portion of the year the asset is used. Complete the form below by determining the depreciation expense and year-end book values for 2020 and 2021 using the 1. sum-of-the-years'-digits method. 2. double-declining balance method. 2020 2021 Sum-of-the-Years'-Digits Method Equipment Less: Accumulated Depreciation $3,060,000 $3,060,000 Year-End Book Value Depreciation...
On July 1, 2020, Martinez Company purchased for $4,680,000 snow-making equipment having an estimated useful life...
On July 1, 2020, Martinez Company purchased for $4,680,000 snow-making equipment having an estimated useful life of 5 years with an estimated salvage value of $195,000. Depreciation is taken for the portion of the year the asset is used Complete the form below by determining the depreciation expense and year-end book values for 2020 and 2021 using the 1. sum-of-the-years'-digits method 2. double-declining balance method 2020 2021 Sum-of-the-Years'-Digits Method Equipment $4,680,000 $4,680,000 Less: Accumulated Depreciation Year-End Book Value Depreciation Expense...
Testbank Problem 134 On July 1, 2020, Novak Company purchased for $5,040,000 snow-making equipment having an...
Testbank Problem 134
On July 1, 2020, Novak Company purchased for $5,040,000
snow-making equipment having an estimated useful life of 5 years
with an estimated salvage value of $210,000. Depreciation is taken
for the portion of the year the asset is used.
Complete the form below by determining the depreciation expense
and year-end book values for 2020 and 2021 using the
1.
sum-of-the-years'-digits method.
2.
double-declining balance method.
2020
2021
Sum-of-the-Years'-Digits Method
Equipment
$5,040,000
$5,040,000
Less: Accumulated Depreciation
$
$...
Testbank Problem 134 On July 1, 2020, Blue Spruce Company purchased for $6,660,000 snow-making equipment having...
Testbank Problem 134
On July 1, 2020, Blue Spruce Company purchased for $6,660,000
snow-making equipment having an estimated useful life of 5 years
with an estimated salvage value of $277,500. Depreciation is taken
for the portion of the year the asset is used.
Complete the form below by determining the depreciation expense
and year-end book values for 2020 and 2021 using the
1.
sum-of-the-years'-digits method.
2.
double-declining balance method.
2020
2021
Sum-of-the-Years'-Digits Method
Equipment
$6,660,000
$6,660,000
Less: Accumulated Depreciation
$...
Depreciation Expense Using the Double-Declining Balance Method The Peete Company purchased an office building for $4,500,000....
Depreciation Expense Using the Double-Declining Balance Method The Peete Company purchased an office building for $4,500,000. The building had an estimated useful life of 25 years and an expected salvage value of $500,000. Calculate the depreciation expense for the second year using the double-declining balance method. $
slotkin products purchased a machine for $65,000 on 1 July 2020. The company intends to depreciate...
slotkin products purchased a machine for $65,000 on 1 July 2020. The company intends to depreciate it over 8 years using the double-declining balance method. Salvage value is $5,000. 1. Calculate depreciation expense for 2020. 2. Prepare journal entry to record the sale of the machine 31 December 2021 for $50,000.
PART B) Compute 2020 depreciation expense
using the double-declining-balance method, assuming the machinery
was purchased on October 1, 2020.
Wildhorse Company purchased machinery on January 1, 2020, for $94,400. The machinery is estimated to have a salvage value of $9,440 after a useful life of 8 years. (a) Compute 2020 depreciation expense using the double-declining-balance method. Depreciation expense $
BE9.6 (L02) Depreciation information for Corales Company is given in BE9.4. Assuming the declining- balance depreciation rate is double the straight-line rate, compute annual depreciation for the first and second years under the declining-balance method. BE9.4 (LO 2) Corales Company acquires a delivery truck at a cost of $38,000. The truck is expected to have a salvage value of $6,000 at the end of its 4-year useful life. Compute annual depreciation expense for the first and second years using the...
Bridgeport Company purchased a delivery truck for $27,000 on
January 1, 2020. The truck has an expected salvage value of $1,500,
and is expected to be driven 102,000 miles over its estimated
useful life of 10 years. Actual miles driven were 12,800 in 2020
and 14,300 in 2021.
Compute depreciation expense for 2020 and 2021 using (1) the
straight-line method, (2) the units-of-activity method, and (3) the
double-declining-balance method. (Round depreciation
cost per unit to 2 decimal places, e.g. 0.50...
On July 1, 2020, Swifty Company purchased for $6,120,000 snow-making equipment having an estimated useful life of 5 years with an estimated salvage value of $255,000. Depreciation is taken for the portion of the year the asset is used. Complete the form below by determining the depreciation expense and year-end book values for 2020 and 2021 using the 1. sum-of-the-years'-digits method. 2. double-declining balance method. 2020 2021 Sum-of-the-Years'-Digits Method Equipment Less: Accumulated Depreciation $6,120,000 $6,120,000 Year-End Book Value $6,120,000 $6,120,000...
On July 1, 2020, Blue Spruce Company purchased for $3,060,000 snow-making equipment having an estimated useful life of 5 years with an estimated salvage value of $127,500. Depreciation is taken for the portion of the year the asset is used. Complete the form below by determining the depreciation expense and year-end book values for 2020 and 2021 using the 1. sum-of-the-years'-digits method. 2. double-declining balance method. 2020 2021 Sum-of-the-Years'-Digits Method Equipment Less: Accumulated Depreciation $3,060,000 $3,060,000 Year-End Book Value Depreciation...
On July 1, 2020, Martinez Company purchased for $4,680,000 snow-making equipment having an estimated useful life of 5 years with an estimated salvage value of $195,000. Depreciation is taken for the portion of the year the asset is used Complete the form below by determining the depreciation expense and year-end book values for 2020 and 2021 using the 1. sum-of-the-years'-digits method 2. double-declining balance method 2020 2021 Sum-of-the-Years'-Digits Method Equipment $4,680,000 $4,680,000 Less: Accumulated Depreciation Year-End Book Value Depreciation Expense...
Testbank Problem 134
On July 1, 2020, Novak Company purchased for $5,040,000
snow-making equipment having an estimated useful life of 5 years
with an estimated salvage value of $210,000. Depreciation is taken
for the portion of the year the asset is used.
Complete the form below by determining the depreciation expense
and year-end book values for 2020 and 2021 using the
1.
sum-of-the-years'-digits method.
2.
double-declining balance method.
2020
2021
Sum-of-the-Years'-Digits Method
Equipment
$5,040,000
$5,040,000
Less: Accumulated Depreciation
$
$...
Testbank Problem 134
On July 1, 2020, Blue Spruce Company purchased for $6,660,000
snow-making equipment having an estimated useful life of 5 years
with an estimated salvage value of $277,500. Depreciation is taken
for the portion of the year the asset is used.
Complete the form below by determining the depreciation expense
and year-end book values for 2020 and 2021 using the
1.
sum-of-the-years'-digits method.
2.
double-declining balance method.
2020
2021
Sum-of-the-Years'-Digits Method
Equipment
$6,660,000
$6,660,000
Less: Accumulated Depreciation
$...
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