ework Assignment i Required information Exercise 8-10A (Algo) Double-declining-balance and units-of-production depreciation: gain or loss on disposal LO 8-3, 8-4, 8-5 [The following information applies to the questions displayed below] Year 1 Year 2 Year 31 Year 4 Exact Photo Service purchased a new color printer at the beginning of Year 1 for $38,020. The printer is expected to have a four-year useful life and a $3,600 salvage value. The expected print production is estimated at $1,778,100 pages. Actual print production for the four years was as follows. Total 548,700 479,800 384,500 385,100 1,798,100 Saved The printer was sold at the end of Year 4 for $3,800 Help Exercise 8-10A (Algo) Part a Required a. Compute the depreciation expense for each of the four years, using double-declining-balance depreciation (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Save & Che

ework Assignment i Required information Exercise 8-10A (Algo) Double-declining-balance and units-of-production depreciation: gain or loss on disposal LO 8-3, 8-4, 8-5 [The following information applies to the questions displayed below] Year 1 Year 2 Year 31 Year 4 Exact Photo Service purchased a new color printer at the beginning of Year 1 for $38,020. The printer is expected to have a four-year useful life and a $3,600 salvage value. The expected print production is estimated at $1,778,100 pages. Actual print production for the four years was as follows. Total 548,700 479,800 384,500 385,100 1,798,100 Saved The printer was sold at the end of Year 4 for $3,800 Help Exercise 8-10A (Algo) Part a Required a. Compute the depreciation expense for each of the four years, using double-declining-balance depreciation (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Save & Che

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 A Kubota tractor acquired on January 8 at a cost of $85,000 has an estimated useful life of 10 years. Assuming that it will have no residual value. a. Determine the depreciation for each of the first two years by the straight-line method. First Year Second Year $fill in the blank 1 $fill in the blank 2 b. Determine the depreciation for each of the first two years by the double-declining-balance method. First Year Second Year $fill in the blank 3 $fill in the blank 4
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Here is the information relating to the equipment of the company Production Inc: Purchase on January 1 X5 $ 100,000Estimated useful life 5 yearsEstimated residual value $ 10,000Total hours of intended use 10,000 hoursNumber of hours of use in X5 3,000 hoursNumber of hours of use in X6 2,500 hoursDeclining balance rate 35% If the Production company used the straight-line depreciation method for its equipment, the depreciation expense for year X6 would amount to: a) $ 18,000b) $ 22,500c) $ 25,000d) None of the abovee) $ 20,000
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MACRS Depreciation Rate Year 0 20.00% OA. $19,104 OB. $11,520 OC. $1,896 OD. $9,480 Year 1 32.00% Year 2 19.20% Year 3 Year 4 11.52% 11.52% Year 5 5.76% A bakery invests $40,000 in a light delivery truck. This was depreciated using the five-year MACRS schedule shown above. If the company sold it immediately after the end of year 2 for $21,000, what would be the after-tax cash flow from the sale of this asset, given a tax rate of 20%?
Modified Accelerated Cost Recovery System An example of a depreciation schedule under the Modified Accelerated Cost Recovery System of depreciation is shown. The Internal Revenue Service (IRS) classifies various assets according to useful life and sets depreciation rates for each year of the asset’s life. This asset has a five year life. The MACRS rates are shown in the schedule. This example is for an asset with a cost of $40,000 and a salvage value of $4,000. MODIFIED ACCELERATED COST RECOVERY SYSTEM Year Cost × Rate = DepreciationExpense AccumulatedDepreciation(End of Year) Book Value(End of Year) 1 $40,000 20.00% $8,000 $8,000 $32,000 2 40,000 32.00% 12,800 20,800 19,200 3 40,000 19.20% 7,680 28,480 11,520 4 40,000 11.52% 4,608 33,088 6,912 5 40,000 11.52% 4,608 37,696 2,304 6 40,000 5.76% 2,304 40,000 0 Prepare a depreciation schedule showing the depreciation…
FINANCIAL ACCOUNTING DEPRECIATION YEAR TWO EXAM CHAPTER 7-9 DEPRECIABLE BASE COST Student Name: SALVAGE VALUE TYPE NAME HERE USEFUL LIFE SRTAIGHT LINE RATE OPERATING HOURS TOTAL COMPUTE YEAR TWO I HAVE COMPUTED YEAR ONE FOR YOU CURRENT OPERATING HOURS DOUBLE DECLINING RATE Equipment purchased at the beginning of the fiscal year for $360,000 is expected to have a useful life of 5 years, or 14,000 operating hours, and a residual value of $10,000. Compute the depreciation for the first and second years of use by each of the following methods: DEPRECIATION EXPENSE UNIT OF PRODUCTION RATE straight-line units-of-output (1,200 hours first year; 2,250 hours second year) double-declining-balance YEAR ONE YEAR TWO DOUBLE DOUBLE STRAIGHT UNITS OF DECLINING STRAIGHT UNITS OF DECLINING LINE PRODUCTION BALANCE LINE PRODUCTION BALANCE
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gnment/takeAssignmentMain.do?invoker-&takeAssignmentSessionLocator-&inprogress-false Book Show Me How Calculator Print Item Comparing three depreciation methods Depreciation Expense Final Questions Instructions Dexter Industries purchased packaging equipment on January 8 for $72,.000. The equipment was expected to have a useful life of three years, or 18,000 operating hours, and a residual value of $4,500. The equipment was used for 7,600 hours during Year 1, 6,000 hours in Year 2, and 4,400 hours in Year 3. Required: 1. Determine the amount of depreciation expense for the three 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 three years by each method. (Note: For DECLINING BALANCE ONLY, round the multiplier to five decimal places. Then round the answer for each year to the nearest whole dollar) 2. What method yields the highest depreciation…