Cruz Company purchased a computer on June 30, 2020, for $16,800. The computer had a salvage value of $4,800 and useful life of six years. Note: In answering the following questions, do not round until your final answer. Round your final answer to the nearest whole dollar. a. Using the declining-balance depreciation method (200%), determine depreciation expense for 2021. Answer b. Using the declining-balance depreciation method (150%), determine depreciation expense for 2021. Answer c. Using the straight-line depreciation method, determine depreciation expense for 2021. 2000

Cruz Company purchased a computer on June 30, 2020, for $16,800. The computer had a salvage value of $4,800 and useful life of six years. Note: In answering the following questions, do not round until your final answer. Round your final answer to the nearest whole dollar. a. Using the declining-balance depreciation method (200%), determine depreciation expense for 2021. Answer b. Using the declining-balance depreciation method (150%), determine depreciation expense for 2021. Answer c. Using the straight-line depreciation method, determine depreciation expense for 2021. 2000

Name: Cruz Company purchased a computer on June 30, 2020, for $16,800. The
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Description: Cruz Company purchased a computer on June 30, 2020, for $16,800. The computer had asalvage value of $4,800 and useful life of six years.Note: In answering the following questions, do not round until your final answer. Round yourfinal answer to the n

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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Concept explainers

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.

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Cruz Company purchased a computer on June 30, 2020, for $16,800. The computer had a
salvage value of $4,800 and useful life of six years.
Note: In answering the following questions, do not round until your final answer. Round your
final answer to the nearest whole dollar.
a. Using the declining-balance depreciation method (200%), determine depreciation
expense for 2021.
Answer
b. Using the declining-balance depreciation method (150%), determine depreciation
expense for 2021.
Answer
c. Using the straight-line depreciation method, determine depreciation expense for
2021.
2000

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