ignmentRequired informationExercise 8-9A (Algo) Computing and recording straight-line versus double-declining-balance depreciationLO 8-2, 8-3[The following information applies to the questions displayed below.]Exercise 8-9A (Algo) Part aF1At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $180,000. It is expected to have afive-year life and a $30,000 salvage value.Required:a-1. Compute the depreciation, assuming that the company uses straight-line depreciation.a-2. Compute the depreciation for each of the five years, assuming that the company uses double-declining-balance depreciation.Complete this question by entering your answers in the tabs below.Req A1Year 1Year 2Compute the depreciation for each of the five years, assuming that the company uses double-declining-balance depreciation.Note: Leave no cells blank - be certain to enter "0" wherever required.Depreciation ExpenseYear 3Year 4Year 5(@2dxReq A2F250°J#3F3$4पंF4< Req A1DII%5F5< Prev1Saved☀Req A2 >OF6A63S4of 11N&7Next >PrtScnF88HomeF99EndF10

Name: ignmentRequired informationExercise 8-9A (Algo) Computing and recordi
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: ignmentRequired informationExercise 8-9A (Algo) Computing and recording straight-line versus double-declining-balance depreciationLO 8-2, 8-3[The following information applies to the questions displayed below.]Exercise 8-9A (Algo) Part aF1At the beg

Cost = $180,000 Salvage Value = $30,000 Useful Life = 5 Years

Business

Accounting

Exercise 8-9A (Algo) Computing and recording straight-line versus double-declining-balance depreciation LO 8-2, 8-3 [The following information applies to the questions displayed below.] At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $180,000. It is expected to have a 600.000 lue

Exercise 8-9A (Algo) Computing and recording straight-line versus double-declining-balance depreciation LO 8-2, 8-3 [The following information applies to the questions displayed below.] At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $180,000. It is expected to have a 600.000 lue

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: SPI Ltd. purchased new excavating equipment at the beginning of Year 1. The equipment has a cost of…

A: The accumulated depreciation is the depreciation charged on the assets till date. The book value of…

Q: Required information Exercise 8-9A (Algo) Computing and recording straight-line versus…

A: Depreciation expense :— It is the allocation of depreciable cost of asset over the estimated useful…

Q: QS 8-8 (Algo) Recording depreciation journal entries LO P1 Record the journal entries for equipment…

A: Depreciation is decline in value of an asset over a period of time also known as useful life of an…

Q: University Car Wash purchased new soap dispensing equipment that cost $210,000 including…

A: Depreciation Expense is incurred on the basis of use, disposition, wear and tear, and Obsolescence…

Q: Required information Problem 10-6A (Algo) Disposal of plant assets LO C1, P1, P2 [The following…

A: Straight Line Method of Depreciation: Under this method of depreciation, the depreciable cost of the…

Q: Use the double-declining-balance method to make a depreciation schedule for a piece of equipment…

A: The double declining balance method of depreciation is an accelerated method of depreciation in…

Q: A numerically controlled milling machine was purchased for $95,000. The estimated salvage value was…

A: Book Value of Machinery: The initial cost of an asset is subtracted from its accumulated…

Q: Record the sale of equipment. Note: Enter debits before credits. Transaction General Journal Debit…

A: Depreciation means the wear and tear by usage of assets or passage of time.

Q: NewTech purchases computer equipment for $256,000 to use in operating activities for the next four…

A: Double declining depreciation is an accelerated depreciation method where the expense is high in…

Q: Problems 7-12 use the following information: A firm purchased a new piece of equipment with an…

A: Value of alpha is the rate of depreciation used for asset under double declining method of…

Q: NewTech purchases computer equipment for $265,000 to use in operating activities for the next four…

A: Depreciation expense is the non-cash expense charged on the non-current assets. It is reported on…

Q: Required information Problem 7-5B (Algo) Determine depreciation under three methods (LO7-4) [The…

A: To prepare the depreciation schedule using the activity-based method, we'll follow these steps: Step…

Q: Problem 8-6A (Algo) Disposal of plant assets LO C1, P1, P2 [The following information applies to the…

A: DEPRECIATION EXPENSEDepreciation means gradual decrease in value of assets due to normal wear and…

Q: 3 DHSH coffee company is considering the purchase of a new top-of-the-line espresso machine. The…

A: NPV is the net present value and is main capital budegting method used and based on the time value…

Q: Question Content Area Computer equipment was acquired at the beginning of the year at a cost of…

A: Depreciation: It is expense charged against the Assets over it's useful life.Straight line method of…

Q: explain part 3 preparing the schedule using activity based depreciation and show all the steps

A: Activity Based Depreciation Under activity method, the depreciation expense is calculated on the…

Q: Suds-n- dogs just purchased new automated wiener handling equipment for $12,000. The salvage value…

A: The negative fall that occur in fixed asset value over respective asset's usable period is called as…

Q: Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the…

A: Depreciation expense is the one which is charged on the non-current assets. It is a non-cash…

Q: Phillips Ltd. purchased a machine on 26 March 20X3 for $98,000 and began to use it immediately. The…

A: Depreciation is considered an expense charge on the value of the asset. It can be calculated by…

Q: CengageNOWv2 | Online teaching and learning resource from Cengage Learning Calculator Sale of…

Q: Find the year 3 depreciation using MACRS for a fleet of taxis (5-year property) that is purchased…

A: MACRS is a system of calculating depreciation for assets. For this, we need to find out which…

Q: ! Required information Problem 7-5B Determine depreciation under three methods (LO7-4) [The…

A: Depreciation expense :— It is the allocation of depreciable cost of asset over the estimated useful…

Q: University Car Wash purchased new soap dispensing equipment that cost $243,000 including…

A: Depreciation rate - SLM = 1/ useful lifeDepreciation rate - DDB = 2*SLM depreciationBook value is…

Q: Modified Accelerated Cost Recovery System (MACRS) (LO 8.2) Calculate the following: Click here to…

A: As per Bartleby policy, only the first 3 parts of the interlinked questions are answered MACRS…

Q: Sulzer Metco Corp purchased a new coating machine to improve performance of its power supply panels.…

A: The required rate of return, also known as the hurdle rate or minimum acceptable rate of return, is…

Q: Problems 7-12 use the following information: A firm purchased a new piece of equipment with an…

A: The Double - declining balance method of depreciationDepreciation= 2 / life time= 2 / 5= 0.40

Q: Onslow Company purchased a used machine for $192,000 cash on January 2. On January 3, Onslow paid…

A: Depreciable value = Cost - Salvage ValueStraight-line depreciation = Depreciable value / estimated…

Q: n = 5 years. Use calculator or spreadsheet-based computations (or both, as directed) to plot annual…

A: Formula: SL Depreciation= Cost of Asset- Salvage ValueLife of Asset

Q: 1, Copeland Drugstore purchased a new computer system for $280,000. It is expected to have a…

A: A double declining balance depreciation method is used to record the depreciation expenses, in this…

Q: Depreciation by Two Methods; Sale of Fixed Asset New lithographic equipment, acquired at a cost of…

A: a) Straight line method: Depreciation = =843,750-72,6005=$154,230 Year DepreciationExpense…

Q: Required information Exercise 7-11A Determine depreciation under three methods (LO7-4) [The…

A: DEPRECIATION EXPENSEDepreciation means gradual decrease in the value of an asset due to normal wear…

Q: Brief Exercise 7-11 (Static) Record depreciation using straight-line method (LO7-4) On January 1,…

A: There are different types of depreciation methods such as straight line method, double declining…

Q: NewTech purchases computer equipment for $270,000 to use in operating activities for the next four…

A: Lets understand the basics.Depreciation is a reduction in value of asset due to wear and tear,…

Q: Required information Problem 7-5A (Algo) Determine depreciation under three methods (LO7-4) [The…

A: Depreciation Expense - Depreciation Expense is incurred on the basis of use, disposition, wear and…

Q: Exercise 7-11A Determine depreciation under three methods (LO7-4) [The following information applies…

A: Answer Computation of annual depreciation for the first two years as per Double -Declining- balance…

Concept explainers

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.

Topic Video

Question

ignment
Required information
Exercise 8-9A (Algo) Computing and recording straight-line versus double-declining-balance depreciation
LO 8-2, 8-3
[The following information applies to the questions displayed below.]
Exercise 8-9A (Algo) Part a
F1
At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $180,000. It is expected to have a
five-year life and a $30,000 salvage value.
Required:
a-1. Compute the depreciation, assuming that the company uses straight-line depreciation.
a-2. Compute the depreciation for each of the five years, assuming that the company uses double-declining-balance depreciation.
Complete this question by entering your answers in the tabs below.
Req A1
Year 1
Year 2
Compute the depreciation for each of the five years, assuming that the company uses double-declining-balance depreciation.
Note: Leave no cells blank - be certain to enter "0" wherever required.
Depreciation Expense
Year 3
Year 4
Year 5
(@
2
dx
Req A2
F2
50°
J
#
3
F3
$
4
पं
F4
< Req A1
DII
%
5
F5
< Prev
1
Saved
☀
Req A2 >
O
F6
A
6
3
S
4
of 11
N
&
7
Next >
PrtScn
F8
8
Home
F9
9
End
F10

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: As per question,

VIEW

Step 2: a-1. Straight line method

VIEW

Step 3: a-2 Double Declining Balance Method

VIEW

Step 4: Depreciation Calculation for Year 4.

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 5 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Problem 8-6A (Algo) Disposal of plant assets LO C1, P1, P2 [The following information applies to the questions displayed below.] Onslow Company purchased a used machine for $240,000 cash on January 2. On January 3, Onslow paid $10,000 to wire electricity to the machine. Onslow paid an additional $2,000 on January 4 to secure the machine for operation. The machine will be used for six years and have a $28,800 salvage value. Straight-line depreciation is used. On December 31, at the end of its fifth year in operations, it is disposed of. Problem 8-6A (Algo) Part 2 2. Prepare journal entries to record depreciation of the machine at December 31. View transaction list Journal entry worksheet < 2 Record the year of disposal year-end adjusting entry for the depreciation expense of the used machine. Note: Enter debits before credits. Date General Journal December 31 Depreciation expense-Machinery Accumulated depreciation-Machinery Debit Credit
Required information Problem 7-5A (Algo) Determine depreciation under three methods (LO7-4) [The following information applies to the questions displayed below.] University Car Wash purchased new soap dispensing equipment that cost $243,000 including installation. The company estimates that the equipment will have a residual value of $28,500. 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 1 2 3 Year 1 4 3556NH 5 6 2 4 Problem 7-5A (Algo) Part 3 Hours Used 2,700 2,000 2,100 3. Prepare a depreciation schedule for six years using the activity-based method. (Round your "Depreciation Rate" to 2 decimal places and use this amount in all subsequent calculations.) 1,900 1,700 2,100 UNIVERSITY CAR WASH Depreciation Schedule-Activity-Based End of Year Amounts Accumulated Depreciation Depreciation Expense Book Value
Please do not give solution in image format thanku
Required information Exercise 7-11A Determine depreciation under three methods (LO7-4) [The following information applies to the questions displayed below.] Speedy Delivery Company purchases a delivery van for $42,400. Speedy estimates that at the end of its four-year service life, the van will be worth $6,400. During the four-year period, the company expects to drive the van 180,000 miles. Actual miles driven each year were 46,000 miles in year 1 and 50,000 miles in year 2. Required: Calculate annual depreciation for the first two years of the van using each of the following methods. (Do not round your intermediate calculations.) Exercise 7-11A Part 3 3. Activity-based. Annual Year Depreciation 2. to search ASUS
Required information Problem 7-5A (Algo) Determine depreciation under three methods (LO7-4) [The following information applies to the questions displayed below.] 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 1 2 3 4 Year 1 2 3 4 5 5 6 Hours Used 2,900 1,800 1,900 2,100 Problem 7-5A (Algo) Part 1 1,900 1,900 Required: 1. Prepare a depreciation schedule for six years using the straight-line method. (Do not round your intermediate calculations.) UNIVERSITY CAR WASH Depreciation Schedule-Straight-Line End of Year Amounts Depreciation Expense Accumulated Depreciation Book Value S
Haresh
Required information Problem 10-6A (Algo) Disposal of plant assets LO C1, P1, P2 [The following information applies to the questions displayed below.] Onslow Company purchased a used machine for $192,000 cash on January 2. On January 3, Onslow paid $8,000 to wire electricity to the machine. Onslow paid an additional $1,600 on January 4 to secure the machine for operation. The machine will be used for six years and have a $23,040 salvage value. Straight-line depreciation is used. On December 31, at the end of its fifth year in operations, it is disposed of. Problem 10-6A (Algo) Part 1 Required: 1. Prepare journal entries to record the machine's purchase and the costs to ready it for use. Cash is paid for all costs incurred. View transaction list Journal entry worksheet
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%?
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
8
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
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