Ayayai Corporation purchased machinery on January 1, 2022, at a cost of $252,000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of $30,200. The company is considering different depreciation methods that could be used for financial reporting purposes. Part 1 Prepare separate depreciation schedules for the machinery using the straight-line method, and the declining-balance method using double the straight-line rate. STRAIGHT-LINE DEPRECIATION Computation End of Year Years Depreciable Cost x Depreciation Rate = Annual Depreciation Expense Accumulated Depreciation Book Value 2022 $enter a dollar amount enter a Depreciation Rate in percentages % $enter a dollar amount $enter a dollar amount $enter a dollar amount 2023 enter a dollar amount enter a Depreciation Rate in percentages % enter a dollar amount enter a dollar amount enter a dollar amount 2024 enter a dollar amount enter a Depreciation Rate in percentages % enter a dollar amount enter a dollar amount enter a dollar amount 2025 enter a dollar amount enter a Depreciation Rate in percentages % enter a dollar amount enter a dollar amount enter a dollar amount $enter a total for the Annual Depreciation Expense column in dollars DOUBLE-DECLINING-BALANCE DEPRECIATION Computation End of Year Years Book Value Beginning of Year × Depreciation Rate = Annual Depreciation Expense Accumulated Depreciation Book Value 2022 $enter a dollar amount enter a Depreciation Rate in percentages % $enter a dollar amount $enter a dollar amount $enter a dollar amount 2023 enter a dollar amount enter a Depreciation Rate in percentages % enter a dollar amount enter a dollar amount enter a dollar amount 2024 enter a dollar amount enter a Depreciation Rate in percentages % enter a dollar amount enter a dollar amount enter a dollar amount 2025 enter a dollar amount enter a Depreciation Rate in percentages % 1,300 * enter a dollar amount enter a dollar amount $enter a total for the Annual Depreciation Expense column in dollars

Ayayai Corporation purchased machinery on January 1, 2022, at a cost of $252,000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of $30,200. The company is considering different depreciation methods that could be used for financial reporting purposes. Part 1 Prepare separate depreciation schedules for the machinery using the straight-line method, and the declining-balance method using double the straight-line rate. STRAIGHT-LINE DEPRECIATION Computation End of Year Years Depreciable Cost x Depreciation Rate = Annual Depreciation Expense Accumulated Depreciation Book Value 2022 $enter a dollar amount enter a Depreciation Rate in percentages % $enter a dollar amount $enter a dollar amount $enter a dollar amount 2023 enter a dollar amount enter a Depreciation Rate in percentages % enter a dollar amount enter a dollar amount enter a dollar amount 2024 enter a dollar amount enter a Depreciation Rate in percentages % enter a dollar amount enter a dollar amount enter a dollar amount 2025 enter a dollar amount enter a Depreciation Rate in percentages % enter a dollar amount enter a dollar amount enter a dollar amount $enter a total for the Annual Depreciation Expense column in dollars DOUBLE-DECLINING-BALANCE DEPRECIATION Computation End of Year Years Book Value Beginning of Year × Depreciation Rate = Annual Depreciation Expense Accumulated Depreciation Book Value 2022 $enter a dollar amount enter a Depreciation Rate in percentages % $enter a dollar amount $enter a dollar amount $enter a dollar amount 2023 enter a dollar amount enter a Depreciation Rate in percentages % enter a dollar amount enter a dollar amount enter a dollar amount 2024 enter a dollar amount enter a Depreciation Rate in percentages % enter a dollar amount enter a dollar amount enter a dollar amount 2025 enter a dollar amount enter a Depreciation Rate in percentages % 1,300 * enter a dollar amount enter a dollar amount $enter a total for the Annual Depreciation Expense column in dollars

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Part 1

Prepare separate depreciation schedules for the machinery using the straight-line method, and the declining-balance method using double the straight-line rate.

STRAIGHT-LINE DEPRECIATION
	Computation				End of Year
Years	Depreciable Cost	x	Depreciation Rate	=	Annual Depreciation Expense		Accumulated Depreciation		Book Value
2022	$enter a dollar amount		enter a Depreciation Rate in percentages	%		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
2023	enter a dollar amount		enter a Depreciation Rate in percentages	%		enter a dollar amount		enter a dollar amount		enter a dollar amount
2024	enter a dollar amount		enter a Depreciation Rate in percentages	%		enter a dollar amount		enter a dollar amount		enter a dollar amount
2025	enter a dollar amount		enter a Depreciation Rate in percentages	%		enter a dollar amount		enter a dollar amount		enter a dollar amount
						$enter a total for the Annual Depreciation Expense column in dollars

DOUBLE-DECLINING-BALANCE DEPRECIATION
	Computation				End of Year
Years	Book Value Beginning of Year	×	Depreciation Rate	=	Annual Depreciation Expense		Accumulated Depreciation		Book Value
2022	$enter a dollar amount		enter a Depreciation Rate in percentages	%		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
2023	enter a dollar amount		enter a Depreciation Rate in percentages	%		enter a dollar amount		enter a dollar amount		enter a dollar amount
2024	enter a dollar amount		enter a Depreciation Rate in percentages	%		enter a dollar amount		enter a dollar amount		enter a dollar amount
2025	enter a dollar amount		enter a Depreciation Rate in percentages	%		1,300	^*	enter a dollar amount		enter a dollar amount
						$enter a total for the Annual Depreciation Expense column in dollars

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.