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
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 8P: Kam Company purchased a machine on January 2, 2019, for 20,000. The machine had an expected life of...
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Question
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
|
|
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 |
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