Kindly rewrite the attached text in handwriting with writing (Hala Haj Hamad) at the top of the page. Thank you
Kindly rewrite the attached text in handwriting with writing (Hala Haj Hamad) at the top of the page. Thank you
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN:9781305666160
Author:James A. Heintz, Robert W. Parry
Publisher:James A. Heintz, Robert W. Parry
Chapter18: Accounting For Long-term Assets
Section: Chapter Questions
Problem 3CE
Related questions
Question
Kindly rewrite the attached text in handwriting with writing (Hala Haj Hamad) at the top of the page. Thank you
![Original Cost = $90,000
Salvage Value = $5000
useful life = 5 years
%3D
annual depreciation as per straight line
method = (Original Cost - Salvage Value)/
Useful Life
= (90,000 - 5,000)/5 = $17000
Depreciations schedule under Straight line
method:
Straight Line Method
Depreciation
Accumulated Depreciation Ending Value
17000
34000
Year
Beginning Value
1
90000
17000
73000
2
73000
17000
56000
3
56000
17000
51000
39000
39000
22000
17000
68000
22000
5
17000
85000
5000
Depreciable value under Units of Activity
method = Original Cost - Salvage Value
= 90,000 - 5000 = $85,000
%3D
Units of Activity Method
Year
Activity
Beginning Value Depreciation
Accumulated Depreciation
Ending Value
1600
90000
13600
13600
76400
2200
76400
18700
32300
57700
3
2400
57700
20400
52700
37300
4
1800
37300
15300
68000
22000
2000
10000
5
22000
17000
85000
5000
85000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fce61473f-8a4f-4492-a59f-75ee745794a7%2F2dfc1f2f-40c8-4c7e-971c-86b53f5aebdc%2Fpi4f6vm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Original Cost = $90,000
Salvage Value = $5000
useful life = 5 years
%3D
annual depreciation as per straight line
method = (Original Cost - Salvage Value)/
Useful Life
= (90,000 - 5,000)/5 = $17000
Depreciations schedule under Straight line
method:
Straight Line Method
Depreciation
Accumulated Depreciation Ending Value
17000
34000
Year
Beginning Value
1
90000
17000
73000
2
73000
17000
56000
3
56000
17000
51000
39000
39000
22000
17000
68000
22000
5
17000
85000
5000
Depreciable value under Units of Activity
method = Original Cost - Salvage Value
= 90,000 - 5000 = $85,000
%3D
Units of Activity Method
Year
Activity
Beginning Value Depreciation
Accumulated Depreciation
Ending Value
1600
90000
13600
13600
76400
2200
76400
18700
32300
57700
3
2400
57700
20400
52700
37300
4
1800
37300
15300
68000
22000
2000
10000
5
22000
17000
85000
5000
85000
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