Exercise 9-12 Income statement effects of alternative depreciation methods LO2 Kenartha Oil recently paid $489,900 for equipment that will last five years and have a residual value of $118,000. By using the machine in its operations for five years, the company expects to earn $184,000 annually, after deducting all expenses except depreciation. Complete the schedule below assuming each of (a) straight-line depreciation and (b) double-declining- balance depreciation. (Do not round intermediate calculations. Enter loss amounts with a minus sign.) (a) Straight-Line Depreciation: Profit before depreciation Depreciation expenses Profit (loss) (b) Double-Declining-Balance Depreciation: Profit before depreciation Depreciation expenses Year 1 Year 1 < Prev Year 2 Year 2 4 of 10 Year 3 Year 3 Next > Year 4 Year 4 Year 5 Year 5 5-Year Totals 5-Year Totals

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Chapter1: Financial Statements And Business Decisions
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Exercise 9-12 Income statement effects of alternative depreciation methods LO2 Kenartha Oil recently paid $489,900 for equipment that will last five years and have a residual value of $118,000. By using the machine in its operations for five years, the company expects to earn $184,000 annually, after deducting all expenses except depreciation. Complete the schedule below assuming each of (a) straight-line depreciation and (b) double-declining- balance depreciation. (Do not round intermediate calculations. Enter loss amounts with a minus sign.) (a) Straight-Line Depreciation: Profit before depreciation Depreciation expenses Profit (loss) (b) Double-Declining-Balance Depreciation: Profit before depreciation Depreciation expenses Year 1 Year 1 < Prev Year 2 Year 2 4 of 10 Year 3 Year 3 Next > Year 4 Year 4 Year 5 Year 5 5-Year Totals 5-Year Totals

Exercise 9-12 Income statement effects of alternative depreciation methods LO2
Kenartha Oil recently paid $489,900 for equipment that will last five years and have a residual value of $118,000. By using
the machine in its operations for five years, the company expects to earn $184,000 annually, after deducting all expenses
except depreciation. Complete the schedule below assuming each of (a) straight-line depreciation and (b) double-declining-
balance depreciation. (Do not round intermediate calculations. Enter loss amounts with a minus sign.)
(a) Straight-Line Depreciation:
Profit before depreciation
Depreciation expenses
Pront (loss)
(b) Double-Declining-Balance Depreciation:
Profit before depreciation
Depreciation expenses
Year 1
Year 1
Year 2
Year 2
< Prev 4 of 10
Year 3
Year 3
Next >
Year 4
Year 4
Year 5
Year 5
5-Year Totals
5-Year Totals
Transcribed Image Text:Exercise 9-12 Income statement effects of alternative depreciation methods LO2 Kenartha Oil recently paid $489,900 for equipment that will last five years and have a residual value of $118,000. By using the machine in its operations for five years, the company expects to earn $184,000 annually, after deducting all expenses except depreciation. Complete the schedule below assuming each of (a) straight-line depreciation and (b) double-declining- balance depreciation. (Do not round intermediate calculations. Enter loss amounts with a minus sign.) (a) Straight-Line Depreciation: Profit before depreciation Depreciation expenses Pront (loss) (b) Double-Declining-Balance Depreciation: Profit before depreciation Depreciation expenses Year 1 Year 1 Year 2 Year 2 < Prev 4 of 10 Year 3 Year 3 Next > Year 4 Year 4 Year 5 Year 5 5-Year Totals 5-Year Totals
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