double-declining-balanceYEAR ONEYEAR TWODOUBLEDOUBLESTRAIGHTUNITS OFDECLININGSTRAIGHTUNITS OFDECLININGLINEPRODUCTIONBALANCELINEPRODUCTIONBALANCEDEPRECIATION YEAR ONECOST#####360,000.00(10,000.00)350,000.0014,000.00#####SALVAGE VALUEDEPRECIABLE BASEUSEFUL LIFEDEPRECIATION EXPENSEUNIT OF PRODUCTION RATE(10,000.00)#####5.0070,000.0025.00CURRENT OPERATING HOURS1,200.00DEPRECIATION EXPENSEDEPRECIABLE BASEDOUBLE DECLINING RATEDEPRECIATION EXPENSE30,000.00#####0.40#####DEPRECIATION YEAR TWO FINANCIAL ACCOUNTINGDEPRECIATION YEAR TWOEXAM CHAPTER 7-9DEPRECIABLE BASECOSTStudent Name:SALVAGE VALUETYPE NAME HEREUSEFUL LIFESRTAIGHT LINE RATEOPERATING HOURS TOTALCOMPUTE YEAR TWO I HAVE COMPUTED YEAR ONE FOR YOUCURRENT OPERATING HOURSDOUBLE DECLINING RATEEquipment purchased at the beginning of the fiscal year for $360,000 is expected to have a useful life of 5 years, or14,000 operating hours, and a residual value of $10,000. Compute the depreciation for the first and second yearsof use by each of the following methods:DEPRECIATION EXPENSEUNIT OF PRODUCTION RATEstraight-lineunits-of-output (1,200 hours first year; 2,250 hours second year)double-declining-balanceYEAR ONEYEAR TWODOUBLEDOUBLESTRAIGHTUNITS OFDECLININGSTRAIGHTUNITS OFDECLININGLINEPRODUCTIONBALANCELINEPRODUCTIONBALANCE

Name: double-declining-balanceYEAR ONEYEAR TWODOUBLEDOUBLESTRAIGHTUNITS OFD
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Description: double-declining-balanceYEAR ONEYEAR TWODOUBLEDOUBLESTRAIGHTUNITS OFDECLININGSTRAIGHTUNITS OFDECLININGLINEPRODUCTIONBALANCELINEPRODUCTIONBALANCEDEPRECIATION YEAR ONECOST#####360,000.00(10,000.00)350,000.0014,000.00#####SALVAGE VALUEDEPRECIABLE BASEU

Depreciation is a method that reallocates the cost of a tangible asset over its useful life. In…

Business

Accounting

DEPRECIATION YEAR TWO DEPRECIABLE BASE COST SALVAGE VALUE USEFUL LIFE SRTAIGHT LINE RATE OPERATING HOURS TOTAL CURRENT OPERATING HOURS DOUBLE DECLINING RATE FINANCIAL ACCOUNTING EXAM CHAPTER 7-9 Student Name: TYPE NAME HERE COMPUTE YEAR TWO I HAVE COMPUTED YEAR ONE FOR YOU Equipment purchased at the beginning of the fiscal year for $360,000 is expected to have a useful life of 5 years, or 14,000 operating hours, and a residual value of $10,000. Compute the depreciation for the first and second years of use by each of the following methods: DEPRECIATION EXPENSE UNIT OF PRODUCTION RATE straight-line units-of-output (1,200 hours first year: 2,250 hours second year) double-declining-balance YEAR ONE YEAR TWO UNITS OF PRODUCTION DOUBLE DECLINING BALANCE UNITS O RODUCTION DOUBLE DECLINING BALANCE STRAIGHT STRAIGHT LINE

DEPRECIATION YEAR TWO DEPRECIABLE BASE COST SALVAGE VALUE USEFUL LIFE SRTAIGHT LINE RATE OPERATING HOURS TOTAL CURRENT OPERATING HOURS DOUBLE DECLINING RATE FINANCIAL ACCOUNTING EXAM CHAPTER 7-9 Student Name: TYPE NAME HERE COMPUTE YEAR TWO I HAVE COMPUTED YEAR ONE FOR YOU Equipment purchased at the beginning of the fiscal year for $360,000 is expected to have a useful life of 5 years, or 14,000 operating hours, and a residual value of $10,000. Compute the depreciation for the first and second years of use by each of the following methods: DEPRECIATION EXPENSE UNIT OF PRODUCTION RATE straight-line units-of-output (1,200 hours first year: 2,250 hours second year) double-declining-balance YEAR ONE YEAR TWO UNITS OF PRODUCTION DOUBLE DECLINING BALANCE UNITS O RODUCTION DOUBLE DECLINING BALANCE STRAIGHT STRAIGHT LINE

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.

Question

double-declining-balance
YEAR ONE
YEAR TWO
DOUBLE
DOUBLE
STRAIGHT
UNITS OF
DECLINING
STRAIGHT
UNITS OF
DECLINING
LINE
PRODUCTION
BALANCE
LINE
PRODUCTION
BALANCE
DEPRECIATION YEAR ONE
COST
#####
360,000.00
(10,000.00)
350,000.00
14,000.00
#####
SALVAGE VALUE
DEPRECIABLE BASE
USEFUL LIFE
DEPRECIATION EXPENSE
UNIT OF PRODUCTION RATE
(10,000.00)
#####
5.00
70,000.00
25.00
CURRENT OPERATING HOURS
1,200.00
DEPRECIATION EXPENSE
DEPRECIABLE BASE
DOUBLE DECLINING RATE
DEPRECIATION EXPENSE
30,000.00
#####
0.40
#####
DEPRECIATION YEAR TWO

FINANCIAL ACCOUNTING
DEPRECIATION YEAR TWO
EXAM CHAPTER 7-9
DEPRECIABLE BASE
COST
Student Name:
SALVAGE VALUE
TYPE NAME HERE
USEFUL LIFE
SRTAIGHT LINE RATE
OPERATING HOURS TOTAL
COMPUTE YEAR TWO I HAVE COMPUTED YEAR ONE FOR YOU
CURRENT OPERATING HOURS
DOUBLE DECLINING RATE
Equipment purchased at the beginning of the fiscal year for $360,000 is expected to have a useful life of 5 years, or
14,000 operating hours, and a residual value of $10,000. Compute the depreciation for the first and second years
of use by each of the following methods:
DEPRECIATION EXPENSE
UNIT OF PRODUCTION RATE
straight-line
units-of-output (1,200 hours first year; 2,250 hours second year)
double-declining-balance
YEAR ONE
YEAR TWO
DOUBLE
DOUBLE
STRAIGHT
UNITS OF
DECLINING
STRAIGHT
UNITS OF
DECLINING
LINE
PRODUCTION
BALANCE
LINE
PRODUCTION
BALANCE

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