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Make a partial depreciation schedule for the third year using the units-of-production depreciation for a laser engraver that costs $44,000 and has a scrap value of $2,000. The engraver has an expected life of 400,000 hours and is expected to last 15 years. Hours used 24,744 2 20,171 3 21,784 Year 1 Annual Accumulated End-of-year depreciation depreciation book value Complete the table below. Round each answer to the nearest cent. Hours Annual Accumulated used depreciation depreciation Year 1 24,744 $2,598.12 2 20,171 $2,117.96 3 21,784 $ $2,598.12 $4,716.08 End-of-year book value $41,401.88 $39,283.92

Make a partial depreciation schedule for the third year using the units-of-production depreciation for a laser engraver that costs $44,000 and has a scrap value of $2,000. The engraver has an expected life of 400,000 hours and is expected to last 15 years. Hours used 24,744 2 20,171 3 21,784 Year 1 Annual Accumulated End-of-year depreciation depreciation book value Complete the table below. Round each answer to the nearest cent. Hours Annual Accumulated used depreciation depreciation Year 1 24,744 $2,598.12 2 20,171 $2,117.96 3 21,784 $ $2,598.12 $4,716.08 End-of-year book value $41,401.88 $39,283.92

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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The image provides information on how to create a partial depreciation schedule for the third year using the units-of-production depreciation method for a laser engraver. The engraver costs $44,000, has a scrap value of $2,000, and is expected to last 15 years with an expected life of 400,000 hours. **Table 1: Initial Depreciation Data** | Year | Hours Used | Annual Depreciation | Accumulated Depreciation | End-of-Year Book Value | |------|------------|---------------------|--------------------------|------------------------| | 1 | 24,744 | | | | | 2 | 20,171 | | | | | 3 | 21,784 | | | | **Task:** Complete the table for the third year. **Table 2: Completed Depreciation Schedule** | Year | Hours Used | Annual Depreciation | Accumulated Depreciation | End-of-Year Book Value | |------|------------|---------------------|--------------------------|------------------------| | 1 | 24,744 | $2,598.12 | $2,598.12 | $41,401.88 | | 2 | 20,171 | $2,117.96 | $4,716.08 | $39,283.92 | | 3 | 21,784 | $ | $ | $ | **Instructions:** 1. Fill in the third year's annual depreciation, accumulated depreciation, and end-of-year book value, rounding each answer to the nearest cent. This exercise demonstrates how to calculate depreciation using the units-of-production method, which considers the actual usage of an asset to determine its depreciation, rather than just time.
Transcribed Image Text:The image provides information on how to create a partial depreciation schedule for the third year using the units-of-production depreciation method for a laser engraver. The engraver costs $44,000, has a scrap value of $2,000, and is expected to last 15 years with an expected life of 400,000 hours. **Table 1: Initial Depreciation Data** | Year | Hours Used | Annual Depreciation | Accumulated Depreciation | End-of-Year Book Value | |------|------------|---------------------|--------------------------|------------------------| | 1 | 24,744 | | | | | 2 | 20,171 | | | | | 3 | 21,784 | | | | **Task:** Complete the table for the third year. **Table 2: Completed Depreciation Schedule** | Year | Hours Used | Annual Depreciation | Accumulated Depreciation | End-of-Year Book Value | |------|------------|---------------------|--------------------------|------------------------| | 1 | 24,744 | $2,598.12 | $2,598.12 | $41,401.88 | | 2 | 20,171 | $2,117.96 | $4,716.08 | $39,283.92 | | 3 | 21,784 | $ | $ | $ | **Instructions:** 1. Fill in the third year's annual depreciation, accumulated depreciation, and end-of-year book value, rounding each answer to the nearest cent. This exercise demonstrates how to calculate depreciation using the units-of-production method, which considers the actual usage of an asset to determine its depreciation, rather than just time.
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