Carla Vista Company purchased equipment on account on September 3, 2019, at an invoice price of $199,000. On September 4, 2019, it paid $5,200 for delivery of the equipment. A one-year, $1,990 insurance policy on the equipment was purchased on September 6, 2019. On September 20, 2019, Carla Vista paid $2,800 for installation and testing of the equipment. The equipment was ready for use on October 1, 2019.Carla Vista estimates that the equipment's useful life will be four years, with a residual value of $15,500. It also estimates that, in terms of activity, the equipment's useful life will be 95,750 units. Carla Vista has a September 30 fiscal year end. Assume that actual usage is as follows: # of Units Year Ended September 30 15,590 2020 23,890 2021 20,190 2022 36,980 2023 Your answer is correct. Determine the cost of the equipment. Cost of equipment $ LINK TO TEXT Your answer is incorrect. Try again. Prepare depreciation schedules for the life of the asset under the following depreciation methods: 1. straight-line 2. double diminishing-balance 3. units-of-production (Round depreciable amount per unit to 2 decimal places, e.g. 5.27 and the final answers to 0 decimal places, e.g. 5,276.)1. STRAIGHT-LINE DEPRECIATION End of Year Year DepreciableAmount × Depr.Rate = Depr.Expense Accum.Depr. CarryingAmount 2020 $ % $ $ $ 2021 % 2022 % 2023 % 2. DOUBLE DIMINISHING-BALANCE DEPRECIATION End of Year Year Carrying AmountBeginningOf Year × Depr.Rate = Depr.Expense Accum.Depr. CarryingAmount 2020 $ % $ $ $ 2021 % 2022 % 2023 % 3. UNITS-OF-PRODUCTION End of Year Year Units ofProduction × Depr.Amt/Unit = Depr.Expense Accum.Depr. CarryingAmount 2020 $ $ $ $ 2021 2022 2023 LINK TO TEXT Your answer is correct. Which method would result in the highest profit for the year ended September 30, 2021? Over the life of the asset? All three methodsStraight-line Units-of-ActivityDouble Diminishing-Balance method would result in the highest profit for the year ended September 30, 2021. Over the life of the asset, units-of-activityall three methodsdouble diminishing-balance straight-line result in the same total depreciation expense.

Carla Vista Company purchased equipment on account on September 3, 2019, at an invoice price of $199,000. On September 4, 2019, it paid $5,200 for delivery of the equipment. A one-year, $1,990 insurance policy on the equipment was purchased on September 6, 2019. On September 20, 2019, Carla Vista paid $2,800 for installation and testing of the equipment. The equipment was ready for use on October 1, 2019.Carla Vista estimates that the equipment's useful life will be four years, with a residual value of $15,500. It also estimates that, in terms of activity, the equipment's useful life will be 95,750 units. Carla Vista has a September 30 fiscal year end. Assume that actual usage is as follows: # of Units Year Ended September 30 15,590 2020 23,890 2021 20,190 2022 36,980 2023 Your answer is correct. Determine the cost of the equipment. Cost of equipment $ LINK TO TEXT Your answer is incorrect. Try again. Prepare depreciation schedules for the life of the asset under the following depreciation methods: 1. straight-line 2. double diminishing-balance 3. units-of-production (Round depreciable amount per unit to 2 decimal places, e.g. 5.27 and the final answers to 0 decimal places, e.g. 5,276.)1. STRAIGHT-LINE DEPRECIATION End of Year Year DepreciableAmount × Depr.Rate = Depr.Expense Accum.Depr. CarryingAmount 2020 $ % $ $ $ 2021 % 2022 % 2023 % 2. DOUBLE DIMINISHING-BALANCE DEPRECIATION End of Year Year Carrying AmountBeginningOf Year × Depr.Rate = Depr.Expense Accum.Depr. CarryingAmount 2020 $ % $ $ $ 2021 % 2022 % 2023 % 3. UNITS-OF-PRODUCTION End of Year Year Units ofProduction × Depr.Amt/Unit = Depr.Expense Accum.Depr. CarryingAmount 2020 $ $ $ $ 2021 2022 2023 LINK TO TEXT Your answer is correct. Which method would result in the highest profit for the year ended September 30, 2021? Over the life of the asset? All three methodsStraight-line Units-of-ActivityDouble Diminishing-Balance method would result in the highest profit for the year ended September 30, 2021. Over the life of the asset, units-of-activityall three methodsdouble diminishing-balance straight-line result in the same total depreciation expense.

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

# of Units		Year Ended September 30
15,590		2020
23,890		2021
20,190		2022
36,980		2023


	Your answer is correct.

Determine the cost of the equipment.

Cost of equipment

LINK TO TEXT


	Your answer is incorrect. Try again.

Prepare depreciation schedules for the life of the asset under the following depreciation methods:

1.		straight-line
2.		double diminishing-balance
3.		units-of-production

(Round depreciable amount per unit to 2 decimal places, e.g. 5.27 and the final answers to 0 decimal places, e.g. 5,276.)

1. STRAIGHT-LINE DEPRECIATION

							End of Year
Year	Depreciable Amount	×	Depr. Rate	=	Depr. Expense	Accum. Depr.	Carrying Amount
2020	$			%		$	$	$
2021				%
2022				%
2023				%

2. DOUBLE DIMINISHING-BALANCE DEPRECIATION

								End of Year
Year	Carrying Amount Beginning Of Year	×	Depr. Rate	=	Depr. Expense	Accum. Depr.	Carrying Amount
2020	$			%		$		$	$
2021				%
2022				%
2023				%

3. UNITS-OF-PRODUCTION

						End of Year
Year	Units of Production	×	Depr. Amt/Unit	=	Depr. Expense	Accum. Depr.	Carrying Amount
2020			$		$	$	$
2021
2022
2023

LINK TO TEXT


	Your answer is correct.

Which method would result in the highest profit for the year ended September 30, 2021? Over the life of the asset?

All three methodsStraight-line Units-of-ActivityDouble Diminishing-Balance

method would result in the highest profit for the year ended September 30, 2021. Over the life of the asset,

units-of-activityall three methodsdouble diminishing-balance straight-line

result in the same total depreciation expense.

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