Equipment costing $30,000 with a 4-year useful life and an estimated $5,000 salvage value is acquired and started operating on January 1. The equipment is estimated to produce 5,000 units of product during its life. It produced 750 units in the first yeat. QS 8-8 (Algo) Recording depreciation journal entries LO P1 Record the journal entries for equipment depreciation for the first year under straight-line, units-of-production, and double-declining- balance.

Equipment costing $30,000 with a 4-year useful life and an estimated $5,000 salvage value is acquired and started operating on January 1. The equipment is estimated to produce 5,000 units of product during its life. It produced 750 units in the first yeat. QS 8-8 (Algo) Recording depreciation journal entries LO P1 Record the journal entries for equipment depreciation for the first year under straight-line, units-of-production, and double-declining- balance.

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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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w Show Me How Print Item Question Content Area Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $393,800. The equipment was expected to have a useful life of four years, or 8,400 operating hours, and a residual value of $32,600. The equipment was used for 2,940 hours during Year 1, 1,764 hours in Year 2, 2,352 hours in Year 3, and 1,344 hours in Year 4. Required: 1. Determine the amount of depreciation expense for the four years ending December 31 by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the four years by each method. Round the answer for each year to the nearest whole dollar. Depreciation Expense Year Straight-Line Method Units-of-Activity Method Double-Declining-Balance Method Year 1 $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 Year 2 $fill in the blank 4 $fill in…
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Complete using the Method a Asset Sewing Machine Units of of depreciation ( Round to OF Cent When necissary) Cost $10,200 $1,700 production nearest tenth Salvage Value units of Depreciation. Useful Life per unit 170,000 Grams
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Depreciation by Units-of-Activity Depreciation A diesel-powered tractor with a cost of $191,060 and estimated residual value of $2,900 is expected to have a useful operating life of 64,000 hours. During November, the tractor was operated 100 hours. Determine the depreciation for the month. Carry out any division to two decimal places.
m/ilrn/takeAssignment/takeAssignmentMain.do?invoker-assignments&takeAssignmentSession Locator-assign... eBook Show Me How A ✩ Comparing three depreciation methods Dexter Industries purchased packaging equipment on January 8 for $112,500. The equipment was expected to have a useful life of 3 years, or 22,500 operating hours, and a residual value of $4,500. The equipment was used for 9,000 hours during Year 1, 6,750 hours in Year 2, and 6,750 hours in Year 3. Required: 1. Determine the amount of depreciation expense for the 3 years ending December 31, by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the 3 years by each method. Do not round intermediate calculations when determining the depreciation rate. Round the final answers for each year to the nearest whole dollar. Year Year 1 Year 2 Year 3 Total Straight-Line Method Depreciation Expense Units-of-Activity Method 2. What…
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A machine costing $25,625 with a five-year life and $1,500 residual value was purchased on January 2, Compute depreciation for each of the five years, using the double- declining-balance method. 1. Year 1 2. Year 2 3. Year 3 4. Year 4 5. Year 5