Depreciation by Two Methods; Sale of Fixed Asset New lithographic equipment, acquired at a cost of $656,250 on March 1 of Year 1 (beginning of the fiscal year), has an estimated useful life of five years and an estimated residual value of $56,400. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. On March 4 of Year 5, the equipment was sold for $96,100. Required: 1. 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 $fill in the blank 6c5ae1f44078fe7_1 $fill in the blank 6c5ae1f44078fe7_2 $fill in the blank 6c5ae1f44078fe7_3 2 $fill in the blank 6c5ae1f44078fe7_4 $fill in the blank 6c5ae1f44078fe7_5 $fill in the blank 6c5ae1f44078fe7_6 3 $fill in the blank 6c5ae1f44078fe7_7 $fill in the blank 6c5ae1f44078fe7_8 $fill in the blank 6c5ae1f44078fe7_9 4 $fill in the blank 6c5ae1f44078fe7_10 $fill in the blank 6c5ae1f44078fe7_11 $fill in the blank 6c5ae1f44078fe7_12 5 $fill in the blank 6c5ae1f44078fe7_13 $fill in the blank 6c5ae1f44078fe7_14 $fill in the blank 6c5ae1f44078fe7_15 b. Double-declining-balance method Year Depreciation Expense Accumulated Depreciation, End of Year Book Value, End of Year 1 $fill in the blank 6c5ae1f44078fe7_16 $fill in the blank 6c5ae1f44078fe7_17 $fill in the blank 6c5ae1f44078fe7_18 2 $fill in the blank 6c5ae1f44078fe7_19 $fill in the blank 6c5ae1f44078fe7_20 $fill in the blank 6c5ae1f44078fe7_21 3 $fill in the blank 6c5ae1f44078fe7_22 $fill in the blank 6c5ae1f44078fe7_23 $fill in the blank 6c5ae1f44078fe7_24 4 $fill in the blank 6c5ae1f44078fe7_25 $fill in the blank 6c5ae1f44078fe7_26 $fill in the blank 6c5ae1f44078fe7_27 5 $fill in the blank 6c5ae1f44078fe7_28 $fill in the blank 6c5ae1f44078fe7_29 $fill in the blank 6c5ae1f44078fe7_30 2. Journalize the entry to record the sale assuming that the manager chose the double declining-balance method. If an amount box does not require an entry, leave it blank. fill in the blank a79dfb01dfea072_2 fill in the blank a79dfb01dfea072_3 fill in the blank a79dfb01dfea072_5 fill in the blank a79dfb01dfea072_6 fill in the blank a79dfb01dfea072_8 fill in the blank a79dfb01dfea072_9 fill in the blank a79dfb01dfea072_11 fill in the blank a79dfb01dfea072_12 3. Journalize the entry to record the sale in (2) assuming that the equipment was sold for $82,500 instead of $96,100. If an amount box does not require an entry, leave it blank. fill in the blank 5a1faffddfa5058_2 fill in the blank 5a1faffddfa5058_3 fill in the blank 5a1faffddfa5058_5 fill in the blank 5a1faffddfa5058_6 fill in the blank 5a1faffddfa5058_8 fill in the blank 5a1faffddfa5058_9 fill in the blank 5a1faffddfa5058_11 fill in the blank 5a1faffddfa5058_12

Depreciation by Two Methods; Sale of Fixed Asset New lithographic equipment, acquired at a cost of $656,250 on March 1 of Year 1 (beginning of the fiscal year), has an estimated useful life of five years and an estimated residual value of $56,400. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. On March 4 of Year 5, the equipment was sold for $96,100. Required: 1. 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 $fill in the blank 6c5ae1f44078fe7_1 $fill in the blank 6c5ae1f44078fe7_2 $fill in the blank 6c5ae1f44078fe7_3 2 $fill in the blank 6c5ae1f44078fe7_4 $fill in the blank 6c5ae1f44078fe7_5 $fill in the blank 6c5ae1f44078fe7_6 3 $fill in the blank 6c5ae1f44078fe7_7 $fill in the blank 6c5ae1f44078fe7_8 $fill in the blank 6c5ae1f44078fe7_9 4 $fill in the blank 6c5ae1f44078fe7_10 $fill in the blank 6c5ae1f44078fe7_11 $fill in the blank 6c5ae1f44078fe7_12 5 $fill in the blank 6c5ae1f44078fe7_13 $fill in the blank 6c5ae1f44078fe7_14 $fill in the blank 6c5ae1f44078fe7_15 b. Double-declining-balance method Year Depreciation Expense Accumulated Depreciation, End of Year Book Value, End of Year 1 $fill in the blank 6c5ae1f44078fe7_16 $fill in the blank 6c5ae1f44078fe7_17 $fill in the blank 6c5ae1f44078fe7_18 2 $fill in the blank 6c5ae1f44078fe7_19 $fill in the blank 6c5ae1f44078fe7_20 $fill in the blank 6c5ae1f44078fe7_21 3 $fill in the blank 6c5ae1f44078fe7_22 $fill in the blank 6c5ae1f44078fe7_23 $fill in the blank 6c5ae1f44078fe7_24 4 $fill in the blank 6c5ae1f44078fe7_25 $fill in the blank 6c5ae1f44078fe7_26 $fill in the blank 6c5ae1f44078fe7_27 5 $fill in the blank 6c5ae1f44078fe7_28 $fill in the blank 6c5ae1f44078fe7_29 $fill in the blank 6c5ae1f44078fe7_30 2. Journalize the entry to record the sale assuming that the manager chose the double declining-balance method. If an amount box does not require an entry, leave it blank. fill in the blank a79dfb01dfea072_2 fill in the blank a79dfb01dfea072_3 fill in the blank a79dfb01dfea072_5 fill in the blank a79dfb01dfea072_6 fill in the blank a79dfb01dfea072_8 fill in the blank a79dfb01dfea072_9 fill in the blank a79dfb01dfea072_11 fill in the blank a79dfb01dfea072_12 3. Journalize the entry to record the sale in (2) assuming that the equipment was sold for $82,500 instead of $96,100. If an amount box does not require an entry, leave it blank. fill in the blank 5a1faffddfa5058_2 fill in the blank 5a1faffddfa5058_3 fill in the blank 5a1faffddfa5058_5 fill in the blank 5a1faffddfa5058_6 fill in the blank 5a1faffddfa5058_8 fill in the blank 5a1faffddfa5058_9 fill in the blank 5a1faffddfa5058_11 fill in the blank 5a1faffddfa5058_12

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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Depreciation by Two Methods; Sale of Fixed Asset

New lithographic equipment, acquired at a cost of $656,250 on March 1 of Year 1 (beginning of the fiscal year), has an estimated useful life of five years and an estimated residual value of $56,400. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year.

On March 4 of Year 5, the equipment was sold for $96,100.

Required:

1. 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	$fill in the blank 6c5ae1f44078fe7_1	$fill in the blank 6c5ae1f44078fe7_2	$fill in the blank 6c5ae1f44078fe7_3
2	$fill in the blank 6c5ae1f44078fe7_4	$fill in the blank 6c5ae1f44078fe7_5	$fill in the blank 6c5ae1f44078fe7_6
3	$fill in the blank 6c5ae1f44078fe7_7	$fill in the blank 6c5ae1f44078fe7_8	$fill in the blank 6c5ae1f44078fe7_9
4	$fill in the blank 6c5ae1f44078fe7_10	$fill in the blank 6c5ae1f44078fe7_11	$fill in the blank 6c5ae1f44078fe7_12
5	$fill in the blank 6c5ae1f44078fe7_13	$fill in the blank 6c5ae1f44078fe7_14	$fill in the blank 6c5ae1f44078fe7_15

b. Double-declining-balance method

Year	Depreciation Expense	Accumulated Depreciation, End of Year	Book Value, End of Year
1	$fill in the blank 6c5ae1f44078fe7_16	$fill in the blank 6c5ae1f44078fe7_17	$fill in the blank 6c5ae1f44078fe7_18
2	$fill in the blank 6c5ae1f44078fe7_19	$fill in the blank 6c5ae1f44078fe7_20	$fill in the blank 6c5ae1f44078fe7_21
3	$fill in the blank 6c5ae1f44078fe7_22	$fill in the blank 6c5ae1f44078fe7_23	$fill in the blank 6c5ae1f44078fe7_24
4	$fill in the blank 6c5ae1f44078fe7_25	$fill in the blank 6c5ae1f44078fe7_26	$fill in the blank 6c5ae1f44078fe7_27
5	$fill in the blank 6c5ae1f44078fe7_28	$fill in the blank 6c5ae1f44078fe7_29	$fill in the blank 6c5ae1f44078fe7_30

2. Journalize the entry to record the sale assuming that the manager chose the double declining-balance method. If an amount box does not require an entry, leave it blank.

		fill in the blank a79dfb01dfea072_2	fill in the blank a79dfb01dfea072_3
		fill in the blank a79dfb01dfea072_5	fill in the blank a79dfb01dfea072_6
		fill in the blank a79dfb01dfea072_8	fill in the blank a79dfb01dfea072_9
		fill in the blank a79dfb01dfea072_11	fill in the blank a79dfb01dfea072_12

3. Journalize the entry to record the sale in (2) assuming that the equipment was sold for $82,500 instead of $96,100. If an amount box does not require an entry, leave it blank.

		fill in the blank 5a1faffddfa5058_2	fill in the blank 5a1faffddfa5058_3
		fill in the blank 5a1faffddfa5058_5	fill in the blank 5a1faffddfa5058_6
		fill in the blank 5a1faffddfa5058_8	fill in the blank 5a1faffddfa5058_9
		fill in the blank 5a1faffddfa5058_11	fill in the blank 5a1faffddfa5058_12

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