# E10.5 (LO 1) (Depreciation Computations—Four Methods) **Scenario:** Robert Parish Corporation purchased a new machine for its assembly process on August 1, 2025. The cost of this machine was $117,900. The company estimated that the machine would have a salvage value of $12,900 at the end of its service life. Its life is estimated at 5 years, and its working hours are estimated at 21,000 hours. Year-end is December 31. **Instructions:** Compute the depreciation expense under the following methods. Each of the following should be considered unrelated. ** d. **Double-declining-balance for 2026.**

# E10.5 (LO 1) (Depreciation Computations—Four Methods) Scenario: Robert Parish Corporation purchased a new machine for its assembly process on August 1, 2025. The cost of this machine was $117,900. The company estimated that the machine would have a salvage value of $12,900 at the end of its service life. Its life is estimated at 5 years, and its working hours are estimated at 21,000 hours. Year-end is December 31. Instructions: Compute the depreciation expense under the following methods. Each of the following should be considered unrelated. d. Double-declining-balance for 2026.**

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter9: Depreciation (deprec)

Section: Chapter Questions

Problem 1R: Dunedin Drilling Company recently acquired a new machine at a cost of 350,000. The machine has an...

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Dunedin Drilling Company recently acquired a new machine at a cost of 350,000. The machine has an estimated useful life of four years or 100,000 hours, and a salvage value of 30,000. This machine will be used 30,000 hours during Year 1, 20,000 hours in Year 2, 40,000 hours in Year 3, and 10,000 hours in Year 4. Dunedin buys equipment frequently and wants to print a depreciation schedule for each assets life. Review the worksheet called DEPREC that follows these requirements. Since some assets acquired are depreciated by straight-line, others by units of production, and others by double-declining balance, DEPREC shows all three methods. You are to use this worksheet to prepare depreciation schedules for the new machine.
Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one it expects to use the truck for 26,000 miles. Calculate the annual depreciation expense.
4. Fontaine Ltd. acquired a machine for $600,000 on January 1, 2022. The machine has a salvage value of $10,000 and a five-year useful life. Fontaine expects the machine to run for 15,000 machine-hours. The machine was actually used for 4,800 hours in 2022 and 3,150 hours in 2023. What would be the balance in the accumulated depreciation account at December 31, 2023, if the straight-line method were used? a.$216,000 b.$236,000 c.$240,000 d.$250,000
Required information [The following information applies to the questions displayed below.) Wardell Company purchased a minicomputer on January 1, 2022, at a cost of $40,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $4,000. On January 1, 2024, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $900. Required: 1. Prepare the year-end journal entry for depreciation on December 31, 2024. No depreciation was recorded during the year. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to nearest whole dollar. View transaction list Journal entry worksheet ences < 1 Record depreciation expense for 2024. Note: Enter debits before credits. Event 1 General Journal Debit Credit
A8
Ayayai Corp. bought equipment on January 1, 2022. The equipment cost $470000 and had an expected salvage value of $70000. The life of the equipment was estimated to be 6 years. The depreciable cost of the equipment is $70000. $470000. $400000. $66667.
Gandolfi Construction Company purchased a CAT 336DL earth mover at a cost of $415,000 in January 2022. The company's estimated useful life of this heavy equipment is 20 years, and the estimated salvage value is $84,000. Required: a. Using straight-line depreciation, calculate the depreciation expense to be recognized for 2022, the first year of the equipment's life, and calculate the equipment's net book value at December 31, 2024, after the third year of the equipment's life. b. Using declining-balance depreciation at twice the straight-line rate, calculate the depreciation expense to be recognized for 2024, the third year of the equipment's life. X Answer is not complete. $ 16.550✔ $365,350✔ a. Depreciation expense a. Net book value b. Double-declining rate b. Depreciation expense
Arabs Company purchased a machine for P650,000 on January 1, 2016. The estimated salvage value of the machine was P46,500 and Arabs estimated that the machine would have a useful life of 10 years, with depreciation being computed using straight line method. How much is the carrying value of the machine on December 31, 2019? P408,600 P455,100 P241,400 P390,000
1. Rufiel Corporation purchased a new machine on January 1, 2023. The machine cost $300,000 and had an estimated salvage value of $40,000. Inverness estimated that the machine will have a useful life of 8 years or 100,000 units. Inverness uses the machine in its manufacturing operations and produces 20,000 units in Year 2023, 33,000 units in Year 2024 and 19,000 units in Year 2025, 17,000 units in Year 2026 and 6,000 units in Year 2027 and 5,000 units in Year 2027. Required: a) Compute depreciation expense for Years 2023 and 2024 using the following methods: • straight line • units-of-production • double declining balance ■ DEPRECIATION EXPENSE 2023 DOUBLE STRAIGHT- YEAR LINE METHOD UNITS OF PRODUCTION DECLINING BALANCE METHOD METHOD 2024 b) Indicate what is the balance of Accumulated Depreciation at the end of each year using the Units-of-Production Method YEARS ACCUMULATED DEPRECIATION 2023 2024 c) What is the book value at the end of 2024 using the Unit-of- Production Method?
! Required information [The following information applies to the questions displayed below.] Wardell Company purchased a minicomputer on January 1, 2022, at a cost of $40,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $4,000. On January 1, 2024, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $900. Required: 1. Prepare the year-end journal entry for depreciation on December 31, 2024. No depreciation was recorded during the year. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to nearest whole dollar. View transaction list t 1 ences Journal entry worksheet 1 Record depreciation expense for 2024. Note: Enter debits before credits. Event 1 General Journal Debit Credit
Quigley, Inc. purchased a machine 4 years ago for $800,000. The machine is being depreciated on a straight-line basis to a salvage value of zero over its estimated useful life of 10 years. What is the annual depreciation expense on this machine? $800,000 $1,000,000 O $80,000 $900,000 None of the other answers in this list are correct. $70,000 $60,000 $700,000
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