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Name: Equipment purchased January 2016 , $ 100000 , Salvage value $ 10000 af
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Description: Equipment purchased January 2016 , $ 100000 , Salvage value $ 10000 after 10 yrs.Depreciation expense - Straight lineDouble declining , Symethod for for three years

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Accounting

Equipment purchased January 2016 , $ 100000 , Salvage value $ 10000 after 10 yrs. Depreciation expense - Straight line Double declining , Symethod for for three years

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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Computing Depreciation Expense. Equipment costing $440,000, with an expected scrap value of $40,000 and an estimated useful life of 5 years, was purchased on January 1, 20 Calculate the depreciation expense for years 2012 to 2016 using: (a) the straight-line method and (b) the double-declining-balance method. Round to the nearest whole number. 2012 2013 2014 2015 2016 Straight-line depreciation Double declining balance (0) without straight-line switch-over s (b) with straight-line switch-over 80,000 v$ 80,000 vS 80,000 vs 80,000 v S 80,000 176,000 vs 176,000 vs 105,600 S 63,360 vs 38,016 $ 17,024 105,600 vs 80,000 x $ 80,000 x s 80,000 x Which method is typically preferred for: A) income tax purposes? Double-dedining balance o thi financial reporting purposes? Straight-line method
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Supplies 1,400 f. Equipment was purchased on January 1 of this year at a cost of $60,000. The equipment's useful life is five years. There is no residual value. Record depreciation for this vear and then determine the equipment's book value Journal Entry Accounts Debit Credit Depreciation Expense-Equipment Accumulated Depreciation-Equipment 60.000 f. 60,000 (? Choose from any list or enter any number in the input fields and then click Check Answer. 1 part remaining Clear All Check Answer 11:17 PM P Type here to search 9/14/2020 insert esc & #3 %24 backspace 8. Q tab Jock G. K pause NE M. alt ctri alt 1.