Exercise 7-10A Determine depreciation for the first year under three methods (LO7-4) [The following information applies to the questions displayed below.] Super Saver Groceries purchased store equipment for $38,500. Super Saver estimates that at the end of its 10-year service life, the equipment will be worth $2,500. During the 10-year period, the company expects to use the equipment for a total of 12,000 hours. Super Saver used the equipment for 1,620 hours the first year. Required: Calculate depreciation expense of the equipment for the first year, using each of the following methods. (Do not round your intermediate calculations.) Exercise 7-1OA Part 1 1. Straight-line.

Exercise 7-10A Determine depreciation for the first year under three methods (LO7-4) [The following information applies to the questions displayed below.] Super Saver Groceries purchased store equipment for $38,500. Super Saver estimates that at the end of its 10-year service life, the equipment will be worth $2,500. During the 10-year period, the company expects to use the equipment for a total of 12,000 hours. Super Saver used the equipment for 1,620 hours the first year. Required: Calculate depreciation expense of the equipment for the first year, using each of the following methods. (Do not round your intermediate calculations.) Exercise 7-1OA Part 1 1. Straight-line.

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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! Required information Problem 7-5B Determine depreciation under three methods (LO7-4) [The following information applies to the questions displayed below.] Cheetah Copy purchased a new copy machine. The new machine cost $110,000 including installation. The company estimates the equipment will have a residual value of $27,500. Cheetah Copy also estimates it will use the machine for four years or about 8,000 total hours. Actual use per year was as follows: Hours Used 2,000 1,600 2,000 3,200 Year 1 2 4 Problem 7-5B Part 2 2. Prepare a depreciation schedule for four years using the double-declining-balance method. (Hint: The asset will be depreciated in only two years.) (Do not round your intermediate calculations.) X Answer is complete but not entirely correct. CHEETAΗ COPY Depreciation Schedule-Double-Declining-Balance End of Year Amounts Depreciation Accumulated Year Вook Value Danreaintion Evnanse
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Deprecation exercise instructions: Assumptions: Purchase at time 0 of a piece of widget processing equipment for an assumed cost of $18,300. The equipment is assumed to have a 7-year economic life. The assumed salvage value for the widget equipment at the end of its economic life is $800. The equipment is expected to produce 35,000 widgets over its economic life. Actual annual production of widgets is 3,450 in year 1, 5,200 in year 2, 5,400 in year 3, 5,350 each in years 4-6 and 4,900 in year 7. Assume for the declining balance method that you will apply a double declining balance approach. Use an Excel spreadsheet to create a table similar to the one shown below. On your Excel spreadsheet, using the assumptions listed above, calculate the annual depreciation expense for the widget processing equipment using each of the four methods and fill in the table in Excel. After you have completed the calculations, determine which method you would choose to use for tax purposes, if you were in…
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Manderlee Cosmetics purchased a company van for $30.000. The van is expected to have a residual value of $10,000 and useful life of 5 years or 140,000 miles. Calculate the depreciation expense under three the methods Miles driven for each of the five years year 1 25.000 miles year 240,000 miles year 3 50.000 miles year 4 15,000 miles year 5 10.000 miles Year 1 2 3 4 Accounting 1A Chapter 9-Long-Term Assets Depreciation Calculations 5 Total Straight-line Method Depreciation Expense Units of Production Method Double Declining Balance Method
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Problem 7-5A (Algo) Determine depreciation under three methods (LO7-4) [The following information applies to the questions displayed below.] 1 2 3 4 5 6 University Car Wash purchased new soap dispensing equipment that cost $231,000 including installation. The company estimates that the equipment will have a residual value of $25,500. University Car Wash also estimates it will use the machine for six years or about 12,500 total hours. Actual use per year was as follows: Year Year 1 2 3 4 SSVI 5 6 Problem 7-5A (Algo) Part 2 2. Prepare a depreciation schedule for six years using the double-declining-balance method. (Do not round your intermediate calculations.) Hours Used 2,900 1,800 1,900 2,100 1,900 1,900 Depreciation Expense UNIVERSITY CAR WASH Depreciation Schedule-Double-Declining-Balance End of Year Amounts Accumulated Depreciation Book Value Help
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8. EX.09.233 A machine costing $185,000 with a 5-year life and $20,000 residual value was purchased January 2. Compute depreciation for each of the five years, using the double-declining-balance method. Year Depreciation Year 1 $4 Year 2 Year 3 Year 4 Year 5
Exercise 7-10A Determine depreciation for the first year under three methods (LO7-4) [The following information applies to the questions displayed below.] Super Saver Groceries purchased store equipment for $38,500. Super Saver estimates that at the end of its 10-year service life, the equipment will be worth $2,500. During the 10-year period, the company expects to use the equipment for a total of 12,000 hours. Super Saver used the equipment for 1,620 hours the first year. Required: Calculate depreciation expense of the equipment for the first year, using each of the following methods. (Do not round your intermediate calculations.) Exercise 7-1OA Part 2 2. Double-declining-balance. Depreciation expense e to search ASUS
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