At December 31, 2022, Dynamic Exploration's balance sheet showed total PPE assets of $802,000 and total accumulated depreciation of $339,980 as detailed in the PPE subledger below. Dynamic calculates depreciation to the nearest whole month. Required: Complete the schedule by calculating depreciation expense for 2023 for each asset and then determining the balance of accumulated depreciation at December 31, 2023. (Do not round intermediate calculations and round the final answers to nearest whole dollar.) Description Building Modular Furniture Truck Date of Purchase May 2, 2017 May 2, 2017 Jan. 25, 2020 Cost Information. Depreciation Method1 S/L S/L DDB Cost2 $ 650,000 $ 72,000 80,000 Residual Life 250,000 10 yr. 0 6 yr. 10,000 8 yr Balance of Accum. Deprec. Dec. 31, 2022 $ Depreciation Depreciation Expense for 2023 226,667 $ 68,000 45,313 12,000 Balance of Accum. Deprec. Dec. 31, 2023

At December 31, 2022, Dynamic Exploration's balance sheet showed total PPE assets of $802,000 and total accumulated depreciation of $339,980 as detailed in the PPE subledger below. Dynamic calculates depreciation to the nearest whole month. Required: Complete the schedule by calculating depreciation expense for 2023 for each asset and then determining the balance of accumulated depreciation at December 31, 2023. (Do not round intermediate calculations and round the final answers to nearest whole dollar.) Description Building Modular Furniture Truck Date of Purchase May 2, 2017 May 2, 2017 Jan. 25, 2020 Cost Information. Depreciation Method1 S/L S/L DDB Cost2 $ 650,000 $ 72,000 80,000 Residual Life 250,000 10 yr. 0 6 yr. 10,000 8 yr Balance of Accum. Deprec. Dec. 31, 2022 $ Depreciation Depreciation Expense for 2023 226,667 $ 68,000 45,313 12,000 Balance of Accum. Deprec. Dec. 31, 2023

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Description: At December 31, 2022, Dynamic Exploration's balance sheet showed total PPE assets of $802,000 and total accumulated depreciationof $339,980 as detailed in the PPE subledger below. Dynamic calculates depreciation to the nearest whole month.Required:C

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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Concept explainers

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.

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Question

At December 31, 2022, Dynamic Exploration's balance sheet showed total PPE assets of $802,000 and total accumulated depreciation
of $339,980 as detailed in the PPE subledger below. Dynamic calculates depreciation to the nearest whole month.
Required:
Complete the schedule by calculating depreciation expense for 2023 for each asset and then determining the balance of accumulated
depreciation at December 31, 2023. (Do not round intermediate calculations and round the final answers to nearest whole dollar.)
Description
Building
Modular Furniture
Truck
Date of
Purchase
May 2, 2017
May 2, 2017
Jan. 25, 2020
Cost Information
Depreciation
Method1
S/L
S/L
DDB
Cost2
$ 650,000 $
72,000
80,000
Residual Life
250,000 10 yr.
06 yr.
10,000 8 yr.
Balance of
Accum.
Deprec.
Dec. 31, 2022
226,667
68,000
$
45,313
Depreciation
Depreciation
Expense for
2023
$
Check my v
12,000
Balance of
Accum.
Deprec.
Dec. 31, 2023

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