(b) Your answer is incorrect. What amount, if any, was used in the depreciation calculations for the salvage value for this asset? Salvage value $ eTextbook and Media Save for Later Attempts: 1 of 3 used Submit Answer Current Attempt in Progress Blue Company acquired a plant asset at the beginning of Year 1. The asset has an estimated service life of 5 years. An employee has prepared depreciation schedules for this asset using three different methods to compare the results of using one method with the results of using other methods. You are to assume that the following schedules have been correctly prepared for this asset using (1) the straight-line method, (2) the sum-of-the-years'-digits method, and (3) the double-declining-balance method. Double-Declining- Balance Year Straight-Line Sum-of-the- Years'-Digits 1 $12,960 $21,600 $28,800 2 12,960 17,280 17,280 3 12,960 12,960 10,368 4 12,960 8,640 6,221 5 12,960 4,320 2,131 Total $64,800 $64,800 $64,800 Answer the following questions.

(b) Your answer is incorrect. What amount, if any, was used in the depreciation calculations for the salvage value for this asset? Salvage value $ eTextbook and Media Save for Later Attempts: 1 of 3 used Submit Answer Current Attempt in Progress Blue Company acquired a plant asset at the beginning of Year 1. The asset has an estimated service life of 5 years. An employee has prepared depreciation schedules for this asset using three different methods to compare the results of using one method with the results of using other methods. You are to assume that the following schedules have been correctly prepared for this asset using (1) the straight-line method, (2) the sum-of-the-years'-digits method, and (3) the double-declining-balance method. Double-Declining- Balance Year Straight-Line Sum-of-the- Years'-Digits 1 $12,960 $21,600 $28,800 2 12,960 17,280 17,280 3 12,960 12,960 10,368 4 12,960 8,640 6,221 5 12,960 4,320 2,131 Total $64,800 $64,800 $64,800 Answer the following questions.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 3MCQ: When depreciation is recorded each period, what account is debited? a. Depreciation Expense b. Cash...

See similar textbooks

Similar questions

When depreciation is recorded each period, what account is debited? a. Depreciation Expense b. Cash c. Accumulated Depreciation d. The fixed asset account involved Use the following information for Multiple-Choice Questions 7-4 through 7-6: Cox Inc. acquired a machine for on January 1, 2019. The machine has a salvage value of $20,000 and a 5-year useful life. Cox expects the machine to run for 15,000 machine hours. The machine was actually used for 4,200 hours in 2019 and 3,450 hours in 2020.
To test your formulas, assume the machine purchased had an estimated useful life of three years (20,000, 30,000, and 50,000 hours, respectively). Enter the new information in the Data Section of the worksheet. Does your depreciation total 320,000 under all three methods? There are three common errors made by students completing this worksheet. Lets clear up two of them. One, an asset that has a three-year life should have no depreciation claimed in Year 4. This can be corrected using an =IF statement in Year 4. For example, the correct formula in cell C32 is =IF(B32D9,0,(D7D8)/D9) or =IF(B32D9, 0, SLN(D7, D8, D9)). You may wish to edit what you have already entered rather than retype it. Two, as mentioned in requirement 2, the double-declining-balance calculation needs to be modified in the last year of the assets life. Assuming you have already modified the formula for Year 4 (per instructions in step 2), alter the formula for Year 3 also. If you corrected any formulas, test their correctness by trying different estimated useful lives (between 3 and 8) in cell E9. Then reset the Data Section to the original values, save the revised file as DEPREC2, and reprint the worksheet to show the correct formulas. The third common error doesnt need to be corrected in this problem. The general form of the double-declining-balance formula needs to be modified to check the net book value of the asset each year to make sure it does not go below salvage value. =DDB does this automatically, but if you are writing your own formulas, this gets very complicated and is beyond the scope of the problem.
Rembrandt Company acquired a plant asset at the beginning of Year 1. The asset has an estimated service life of 5 years. An employee has prepared depreciation schedules for this asset using three different methods to compare the results of using one method with the results of using other methods. You are to assume that the following schedules have been correctly prepared for this asset using (1) the straight-line method, (2) the sum-of-the-years'-digits method, and (3) the double-declining-balance method. Year Straight-Line Sum-of-the-Years'-Digits Double-Declining-Balance 1 $9,000 $15,000 $20,000 2 9,000 12,000 12,000 3 9,000 9,000 7,200 4 9,000 6,000 4,320 5 9,000 3,000 1,480 Total $45,000 $45,000 $45,000 Answer the following questions. (a) New attempt is in progress. Some of the new entries may impact the last attempt grading.…
Rembrandt Company acquired a plant asset at the beginning of Year 1. The asset has an estimated service life of 5 years. An employee has prepared depreciation schedules for this asset using three different methods to compare the results of using one method with the results of using other methods. You are to assume that the following schedules have been correctly prepared for this asset using (1) the straight-line method, (2) the sum-of-the-years'-digits method, and (3) the double-declining-balance method. Year Straight-Line Sum-of-the-Years'-Digits Double-Declining-Balance 1 $9,000 $15,000 $20,000 2 9,000 12,000 12,000 3 9,000 9,000 7,200 4 9,000 6,000 4,320 5 9,000 3,000 1,480 Total $45,000 $45,000 $45,000 Answer the following questions. (a) Your Answer Correct Answer Correct answer icon Your answer is correct. What is the…
Kingbird Company acquired a plant asset at the beginning of Year 1. The asset has an estimated service life of 5 years. An employee has prepared depreciation schedules for this asset using three different methods to compare the results of using one method with the results of using other methods. You are to assume that the following schedules have been correctly prepared for this asset using (1) the straight-line method, (2) the sum-of-the-years'-digits method, and (3) the double-declining-balance method. Year Straight-Line Sum-of-the-Years'-Digits Double-Declining-Balance 1 $12,780 $21,300 $28,400 2 12,780 17,040 17,040 3 12,780 12,780 10,224 4 12,780 8,520 6,134 5 12,780 4,260 2,102 Total $63,900 $63,900 $63,900 Answer the following questions. (a) What is the cost of the asset being depreciated? Cost of asset $enter the…
Oriole Company acquired a plant asset at the beginning of Year 1. The asset has an estimated service life of 5 years. An employee has prepared depreciation schedules for this asset using three different methods to compare the results of using one method with the results of using other methods. You are to assume that the following schedules have been correctly prepared for this asset using (1) the straight-line method, (2) the sum-of-the-years'-digits method, and (3) the double-declining-balance method. Year Straight-Line Sum-of-the-Years'-Digits Double-Declining-Balance 1 $12,600 $21,000 $28,000 2 12,600 16,800 16,800 3 12,600 12,600 10,080 4 12,600 8,400 6,048 5 12,600 4,200 2,072 Total $63,000 $63,000 $63,000 What is the cost of the asset being depreciated? Cost of asset What amount, if any, was used in the depreciation…
Waterway Company acquired a plant asset at the beginning of Year 1. The asset has an estimated service life of 5 years. An employee has prepared depreciation schedules for this asset using three different methods to compare the results of using one method with the results of using other methods. You are to assume that the following schedules have been correctly prepared for this asset using (1) the straight-line method, (2) the sum-of-the-years'-digits method, and (3) the double-declining-balance method. What is the cost of the asset being depreciated? Year Straight-Line Sum-of-the-Years'-Digits Double-Declining-Balance 1 $12,420 $20,700 $27,600 2 12,420 16,560 16,560 3 12,420 12,420 9,936 4 12,420 8,280 5,962 5 12,420 4,140 2,042 Total $62,100 $62,100 $62,100
Windsor Company acquired a plant asset at the beginning of Year 1. The asset has an estimated service life of 5 years. An employee has prepared depreciation schedules for this asset using three different methods to compare the results of using one method with the results of using other methods. You are to assume that the following schedules have been correctly prepared for this asset using (1) the straight-line method, (2) the sum-of-the-years'-digits method, and (3) the double-declining- balance method. Year 1 2 3 4 5 Total Straight-Line $12,420 12,420 12,420 12,420 12,420 $62,100 Sum-of-the- Years'-Digits Balance $20,700 16,560 12,420 8,280 4,140 Double-Declining- $62,100 $27,600 16,560 9,936 5,962 2,042 $62,100 What is the cost of the asset being depreciated? What amount, if any, was used in the depreciation calculations for the salvage value for this asset?
Sunland Company acquired a plant asset at the beginning of Year 1. The asset has an estimated service life of 5 years. An employee has prepared depreciation schedules for this asset using three different methods to compare the results of using one method with the results of using other methods. You are to assume that the following schedules have been correctly prepared for this asset using (1) the straight-line method, (2) the sum-of-the-years'-digits method, and (3) the double-declining-balance method. Sum-of-the- Double-Declining- Year Straight-Line Years'-Digits Balance 1 $ 11,340 $ 18,900 $ 25,200 2 11,340 15,120 15,120 3 11,340 11,340 9,072 4 11,340 7,560 5,443 5 11,340 3,780 1,865 Total $ 56,700 $ 56,700 $ 56,700
Rembrandt company acquired a plant asset at the beginning of year one. The asset has an estimated service life of five years. An employee has prepared depreciation schedules for this asset using three different methods to compare the results of using one method with the results of using other methods. You are to assume that the following schedules have been correctly prepared for this asset using 1) the straight line method, 2) the sum of the years digits method, and 3)the double declining balance method. Year straight line sum of the years digits double declining balance 1 $9000 $15,000 $20,000 2 $9000 $12,000 $12,000 3 $9000 $9000 $7200 4 $9000 $6000 $4320 5 $9000 $3000 $1480 Total $45,000 $45,000 $45,000 a) what is the cost of the asset being depreciated? b) what amount, if any, was used in the depreciation calculations for the salvage value for this asset? c) which method will produce the highest charge to income in Year 1?
Rembrandt company acquired a plant asset at the beginning of year one. The asset has an estimated service life of five years. An employee has prepared depreciation schedules for this asset using three different methods to compare the results of using one method with the results of using other methods. You are to assume that the following schedules have been correctly prepared for this asset using 1) the straight line method, 2) the sum of the years digits method, and 3)the double declining balance method. Year straight line sum of the years digits double declining balance 1 $9000 $15,000 $20,000 2 $9000 $12,000 $12,000 3 $9000 $9000 $7200 4 $9000 $6000 $4320 5 $9000 $3000 $1480 Total $45,000 $45,000 $45,000 D) which method will produce the highest charge to income in Year 4? e) which method will produce the highest book value for the asset at the end of Year 3? f) If the asset is sold at the end of year 3, which method would heal the highest gain or lowest loss on…
Hello, please help me find the cost of the item being depreciated and explain how you found the answer. Thank you!