**Billings Corporation purchased a wood pulp mixer for $17,344. Delivery costs totaled $464. The useful life is 7 years, and the salvage value is $1,260.***Prepare a depreciation schedule using the sum-of-the-years' digits method.***Billings Corporation SYD Depreciation Schedule—Wood Pulp Mixer**| Year | Total Depreciation ($) | × | Depreciation Rate Fraction | = | Annual Depreciation ($) | Accumulated Depreciation ($) | Book Value ($) ||------|------------------------|---|----------------------------|---|--------------------------|------------------------------|----------------|| 1 | | × | 7/28 | = | | | $17,808 (new) || 2 | | × | 6/28 | = | | | || 3 | | × | 5/28 | = | | | || 4 | | × | 4/28 | = | | | || 5 | | × | 3/28 | = | | | || 6 | | × | 2/28 | = | | | || 7 | | × | 1/28 | = | | | |- **Total Depreciation** is to be calculated for each year based on the sum-of-the-years' digits method.- **Depreciation Rate Fraction** starts at 7/28 for the first year and decreases to 1/28 by the seventh year, reflecting the declining fraction method.- **Annual Depreciation** will be calculated by multiplying the total depreciation by the depreciation rate fraction for each year.- **Accumulated Depreciation** will be the cumulative total of all annual depreciations up to that year.- **Book Value** starts at $17,808 (total initial cost) and decreases as depreciation is subtracted each year.**Need Help?** - **Read It**- **Watch It**- **Master It**

Depreciation is a method that allocates the cost of the asset over the economic life of the asset.…

Billings Corporation purchased a wood pulp mixer for $17,344. Delivery costs totaled $464. The useful is 7 years, and the salvage value is $1,260. Prepare a depreciation schedule using the sum-of-the-years' digits method. Billings Corporation SYD Depreciation Schedule-Wood Pulp Mixer Year Total Depreciation ($) x Depreciation Rate Fraction = Annual Depreciation ($) Accumulated Depreciation ($) Book Value ($) $17,808 (new) 1 2 3 لیا 4 5 6 7 $ LA VA $ LA $ X X X X X X X 7/28 6/28 5/28 4/28 3/28 2/28 1/28 II || || 11 11 "I "I LA LA LA LA $ VA $ VA VA JA $ $ LA LA $ LA

Billings Corporation purchased a wood pulp mixer for $17,344. Delivery costs totaled $464. The useful is 7 years, and the salvage value is $1,260. Prepare a depreciation schedule using the sum-of-the-years' digits method. Billings Corporation SYD Depreciation Schedule-Wood Pulp Mixer Year Total Depreciation ($) x Depreciation Rate Fraction = Annual Depreciation ($) Accumulated Depreciation ($) Book Value ($) $17,808 (new) 1 2 3 لیا 4 5 6 7 $ LA VA $ LA $ X X X X X X X 7/28 6/28 5/28 4/28 3/28 2/28 1/28 II || || 11 11 "I "I LA LA LA LA $ VA $ VA VA JA $ $ LA LA $ LA

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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