# Depreciation by Two Methods; Sale of Fixed Asset## Overview### ContextNew lithographic equipment, acquired at a cost of $812,500 on March 1 at the beginning of a fiscal year, has an estimated useful life of five years and an estimated residual value of $69,900. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. Based on the presented data, the double-declining-balance method was selected.In the first week of the fifth year, on March 4, the equipment was sold for $119,000.### Required1. **Task:** Determine the annual depreciation expense for each of the estimated five years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by the following methods:#### a. Straight-line method| Year | Depreciation Expense | Accumulated Depreciation, End of Year | Book Value, End of Year ||------|----------------------|--------------------------------------|-------------------------|| 1 | | | || 2 | | | || 3 | | | || 4 | | | || 5 | | | |#### b. Double-declining-balance method| Year | Depreciation Expense | Accumulated Depreciation, End of Year | Book Value, End of Year ||------|----------------------|--------------------------------------|-------------------------|| 1 | | | || 2 | | | || 3 | | | || 4 | | | || 5 | | | |### Additional Instructions- A button named "Check My Work" is included, allowing for validation of entries.- This assignment requires calculations to fill in the tables and to understand the impact of depreciation methods on financial statements. Endeavor to accurately compute and record each figure to reflect the depreciation strategies. **Chapter 9: Due Sunday**---### Depreciation Calculation and Journal EntriesThis exercise involves recording depreciation expenses and journalizing sales entries using the double-declining balance method.#### Table: Depreciation and Book ValueThe table requires completion with the following details for each year:- **Year**- **Depreciation Expense**- **Accumulated Depreciation, End of Year**- **Book Value, End of Year**Entries span from Year 1 to Year 5.#### Instructions**1. Journalize the entry to record the sale, assuming the double-declining balance method is used.**- If an amount box does not require an entry, leave it blank.**Entries:**- Three blank lines with dropdowns for account selection and boxes for monetary amounts.**2. Journalize the entry to record the sale in (2), assuming that the equipment was sold for $102,100 instead of $119,000.**- If an amount box does not require an entry, leave it blank.**Entries:**- Similar structure to the previous task with dropdowns and amount boxes.---**Tools Available:**- **Check My Work:** One use remaining.- **Email Instructor**- **Save and Exit****Assignment Score: 0.0%**--- **Note:** At the bottom of the page, options are available for contacting the instructor, submitting the assignment, or saving the work in progress.

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Description: # Depreciation by Two Methods; Sale of Fixed Asset## Overview### ContextNew lithographic equipment, acquired at a cost of $812,500 on March 1 at the beginning of a fiscal year, has an estimated useful life of five years and an estimated residual val

Depreciation: Depreciation is a method that reallocates the cost of a tangible asset over its useful…

Business

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Chapter 9: Due Sunday eBook E Calculator E Print Item Depreciation by Two Methods; Sale of Fixed Asset New lithographic equipment, acquired at a cost of $812,500 on March 1 at the beginning of a fiscal year, has an estimated useful life of five years and an estimated residual value of $69,900. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. On the basis of the data presented to the manager, the double-declining-balance method was selected. In the first week of the fifth year, on March 4, the equipment was sold for $119,000. Required: 1. Determine the annual depreciation expense for each the estimated five years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by the following methods: a. Straight-line method Depreciation Accumulated Depreciation, Book Value, Year Expense End of Year End of Year %24 %24 $4 %$4 %$4 b. Double-declining-balance method Depreciation Accumulated Depreciation, Book Value, Year Expense End of Year End of Year Check My Work 1 more Check My Work uses remaining. Assignment Score: 0.0% Email Instructor Save and Exit Submit Assignment for Gradin

Chapter 9: Due Sunday eBook E Calculator E Print Item Depreciation by Two Methods; Sale of Fixed Asset New lithographic equipment, acquired at a cost of $812,500 on March 1 at the beginning of a fiscal year, has an estimated useful life of five years and an estimated residual value of $69,900. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. On the basis of the data presented to the manager, the double-declining-balance method was selected. In the first week of the fifth year, on March 4, the equipment was sold for $119,000. Required: 1. Determine the annual depreciation expense for each the estimated five years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by the following methods: a. Straight-line method Depreciation Accumulated Depreciation, Book Value, Year Expense End of Year End of Year %24 %24 $4 %$4 %$4 b. Double-declining-balance method Depreciation Accumulated Depreciation, Book Value, Year Expense End of Year End of Year Check My Work 1 more Check My Work uses remaining. Assignment Score: 0.0% Email Instructor Save and Exit Submit Assignment for Gradin

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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