Calculate the Depreciation ForMachinery 20x1 Machinery 20x2 Machinery 20x3 **Book Depreciation Schedule (Straight-line Method)**| | 20x0 | 20x1 | 20x2 | 20x3 ||---------------------|-----------------|-----------------|-----------------|-----------------|| | Expense | A/D | Expense | A/D | Expense | A/D | Expense | A/D || Original machinery | $200,000 | $28,572 | $100,002 | $28,572 | $128,574 | $28,572 | $157,146 | $28,572 | $185,718 || Machinery 20x1 | $100,000 | | | $28,572 | $128,574 | $28,572 | $157,146 | $28,572 | $185,718 || Machinery 20x2 | $100,000 | | | | | $28,572 | $157,146 | $28,572 | $185,718 || Machinery 20x3 | $100,000 | | | | | | | $28,572 | $185,718 || **TOTAL** | | **$28,572** | **$100,002** | **$28,572** | **$128,574** | **$28,572** | **$157,146** | **$28,572** | **$185,718** |**Notes:**- 7-year useful life- Straight-line, Mid-year convention- Zero Salvage value### Explanation:This table outlines the depreciation schedule for machinery using the straight-line method over a period. The machinery has a 7-year useful life with no residual or salvage value. This example uses the mid-year convention, where depreciation starts at the midpoint of the year. The columns labeled "Expense" indicate the amount of depreciation expense recognized each year. The columns labeled "A/D" represent the accumulated depreciation by the end of each year. The initial cost of the original machinery is $200,000, and additional machinery is added in subsequent years, each costing $100,000. The same depreciation expense of $28,572 is applied annually, reflecting the systematic allocation of the machinery’s cost over its useful life.

Depreciation expense: Depreciation expense is the reduction in the particular asset due to its use…

Answered: Calculate the Depreciation For…

Business

Accounting

Calculate the Depreciation For Machinery 20x1 Machinery 20x2 Machinery 20x3

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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Question

Calculate the Depreciation
For

Machinery 20x1

Machinery 20x2

Machinery 20x3

**Book Depreciation Schedule (Straight-line Method)**

| | 20x0 | 20x1 | 20x2 | 20x3 |
|---------------------|-----------------|-----------------|-----------------|-----------------|
| | Expense | A/D | Expense | A/D | Expense | A/D | Expense | A/D |
| Original machinery | $200,000 | $28,572 | $100,002 | $28,572 | $128,574 | $28,572 | $157,146 | $28,572 | $185,718 |
| Machinery 20x1 | $100,000 | | | $28,572 | $128,574 | $28,572 | $157,146 | $28,572 | $185,718 |
| Machinery 20x2 | $100,000 | | | | | $28,572 | $157,146 | $28,572 | $185,718 |
| Machinery 20x3 | $100,000 | | | | | | | $28,572 | $185,718 |
| **TOTAL** | | **$28,572** | **$100,002** | **$28,572** | **$128,574** | **$28,572** | **$157,146** | **$28,572** | **$185,718** |

**Notes:**
- 7-year useful life
- Straight-line, Mid-year convention
- Zero Salvage value

### Explanation:

This table outlines the depreciation schedule for machinery using the straight-line method over a period. The machinery has a 7-year useful life with no residual or salvage value. This example uses the mid-year convention, where depreciation starts at the midpoint of the year.

The columns labeled "Expense" indicate the amount of depreciation expense recognized each year. The columns labeled "A/D" represent the accumulated depreciation by the end of each year.

The initial cost of the original machinery is $200,000, and additional machinery is added in subsequent years, each costing $100,000. The same depreciation expense of $28,572 is applied annually, reflecting the systematic allocation of the machinery’s cost over its useful life.

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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