Ereter Consulting purchased equipment for cash of $160,000 on September 3, 2001 The estimated life of the equipment is 10 years but due to technological advances, Exeter expects to replace the equipment in five years. The salvage value is estimated to be $40,000. Exeter's year-end is December 31. Required Complete a schedule similar to the following for each year of the asset's estimated useful life using the (a) straight-line, and (b) double-declining-balance methods (round calculations to the nearest whole dollar).

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Mid-Chapter D emonst
Part 1
Breter Consulting purchased equipment for cash of $160,000 on September 3,
2001. The estimated life of the equipment is 10 years but due to technological
advances, Exeter expects to replace the equipment in five years. The salvage value
is estimated to be $40,000. Exeter's year-end is December 31.
Required
Complete a schedule similar to the following for each year of the asset's estimated
useful life using the (a) straight-line, and (b) double-declining-balance methods
(round calculations to the nearest whole dollar).
2003 2004
2005 2006
2001
2002
Cost...
Less: Accumulated amortization ...
Book value...
.....
Amortization expense.
Transcribed Image Text:Mid-Chapter D emonst Part 1 Breter Consulting purchased equipment for cash of $160,000 on September 3, 2001. The estimated life of the equipment is 10 years but due to technological advances, Exeter expects to replace the equipment in five years. The salvage value is estimated to be $40,000. Exeter's year-end is December 31. Required Complete a schedule similar to the following for each year of the asset's estimated useful life using the (a) straight-line, and (b) double-declining-balance methods (round calculations to the nearest whole dollar). 2003 2004 2005 2006 2001 2002 Cost... Less: Accumulated amortization ... Book value... ..... Amortization expense.
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