On 1/1/23, Dugout Co buys a piece of equipment for $512,000. It is estimated that the equipment will have a salvage value of $80,000 at the end of its expected useful life of 8 years.REQUIREMENTS:1. Prepare a depreciation schedule using the following methods:a. Straight-line (SL)b. Sum-of-the-years'-digits (SYD)c. Declining balance - 200% (DDB)2. Assume that the original purchase was made on 5/1/23. Using the "exact" method, determine the yearly depreciation expense for the following depreciation methods:a. SLb. SYDc. DDBWhat would the "Half-Year" convention look like for SL?3. Assume that in 2026, it is discovered that the original purchase (on 1/1/23) was expensed rather than capitalized. Give JE's, ignoring the tax effects, required during 2026 if the DDB method is used.4. Assume that in 2027, the estimated salvage value is decreased by $45,000 and the expected useful life is changed to a total of 9 years from date of purchase (1/1/23). Prepare depreciation schedules for the following depreciation methods:a. SLb. SYDc. DDB5. Assume that the SYD method is originally selected (on 1/1/23) and that during 2028, a change to the SL method is made. No change was made to the salvage value or life. Give JE's, ignoring the tax effects, required during 2028.6. Assume that the equipment is estimated to be used 400,000 hours. Determine the amount of depreciation expense FYE 12/31/23 and 12/31/24, assuming the equipment is used:a. (2023) 65,000 hoursb. (2024) 72,500 hours

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Description: On 1/1/23, Dugout Co buys a piece of equipment for $512,000. It is estimated that the equipment will have a salvage value of $80,000 at the end of its expected useful life of 8 years.REQUIREMENTS:1. Prepare a depreciation schedule using the followin

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1/1/23, Dugout Co buys a piece of equipment for $512,000. It is estimated that the equipment will have a salvage value of $80,000 at the end of its expected useful life of 8 years. EQUIREMENTS: 1. Prepare a depreciation schedule using the following methods: Straight-line (SL) b. Sum-of-the-years-digits (SYD) c. Declining balance - 200% (DDB) 2. Assume that the original purchase was made on 5/1/23. Using the "exact" method, determine the yearly depreciation expense for the following depreciation methods:

1/1/23, Dugout Co buys a piece of equipment for $512,000. It is estimated that the equipment will have a salvage value of $80,000 at the end of its expected useful life of 8 years. EQUIREMENTS: 1. Prepare a depreciation schedule using the following methods: Straight-line (SL) b. Sum-of-the-years-digits (SYD) c. Declining balance - 200% (DDB) 2. Assume that the original purchase was made on 5/1/23. Using the "exact" method, determine the yearly depreciation expense for the following depreciation methods:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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