m/ilrn/takeAssignment/takeAssignmentMain.do?invoker-assignments&takeAssignmentSession Locator-assign...eBookShow Me HowA ✩Comparing three depreciation methodsDexter Industries purchased packaging equipment on January 8 for $112,500. The equipment was expected to have a useful life of 3 years, or22,500 operating hours, and a residual value of $4,500. The equipment was used for 9,000 hours during Year 1, 6,750 hours in Year 2, and6,750 hours in Year 3.Required:1. Determine the amount of depreciation expense for the 3 years ending December 31, by (a) the straight-line method, (b) the units-of-activitymethod, and (c) the double-declining-balance method. Also determine the total depreciation expense for the 3 years by each method. Do notround intermediate calculations when determining the depreciation rate. Round the final answers for each year to the nearestwhole dollar.YearYear 1Year 2Year 3TotalStraight-LineMethodDepreciation ExpenseUnits-of-ActivityMethod2. What method yields the highest depreciation expense for Year 1?Double-Declining-Balance MethodS3. What method yields the most depreciation over the 3-year life of the equipment?Check My Work 2 more Check My Work uses remaining.Next

Detailed explanation:a. Straight line methoddepreciation expense per year = (cost - residual value )…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $970,200. The equipment was expected to have a useful life of four years, or 10,000 operating hours, and a residual value of $80,200. The equipment was used for 3,500 hours during Year 1, 2,100 hours in Year 2, 2,800 hours in Year 3, and 1,600 hours in Year 4. Required: 1. Determine the amount of depreciation expense for the four years ending December 31 by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the four years by each method. Round the answer for each year to the nearest whole dollar. Year Year 1 Year 2 Year 3 Year 4 Total Straight-Line Method $ Depreciation Expense $ 222,500 222,500 222,500 222,500 890,000 Units-of-Activity Method $ 311,500 186,900 249,200 142,400 890,000 2. What method yields the highest depreciation expense for Year 1? Double-Declining- Balance…
A Korean Broadcasting Company purchased a printing machine for P100,000 and it has an estimated useful life of 10 years, salvage value of P4,000, production of 400,000 units and working hours of 120,000. The company uses the machine for 18,000 hr. during its Ist year and produces 44,000 units. Compute the annual depreciation using: a. SLM b. Service method с. Output method
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Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $571,600. The equipment was expected to have a useful life of four years, or 9,200 operating hours, and a residual value of $47,200. The equipment was used for 3,220 hours during Year 1, 1,932 hours in Year 2, 2,576 hours in Year 3, and 1,472 hours in Year 4. Required: 1. Determine the amount of depreciation expense for the four years ending December 31 by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the four years by each method. Round the answer for each year to the nearest whole dollar. Depreciation Expense Year Straight-Line Method Units-of-Activity Method Double-Declining-Balance Method Year 1 $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 Year 2 $fill in the blank 4 $fill in the blank 5 $fill in the blank 6 Year 3 $fill in…
Comparing Three Depreciation Methods Waylander Coatings Company purchased waterproofing equipment on January 6 for $391,000. The equipment was expected to have a useful life of four years, or 9,200 operating hours, and a residual value of $32,200. The equipment was used for 3,500 hours during Year 1, 2,900 họurs in Year 2, 1,700 hours in Year 3, and 1,100 hours in Year 4. Required: 1. Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) the units- of-output method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the four years by each method. Note: FOR DECLINING BALANCE ONLY, round the multiplier to four decimal places. Then round the answer for each year to the nearest whole dollar. Depreciation Expense Year Straight-Line Method Units-of-Output Method Double-Declining-Balance Method Year 1 Year 2 Year 3 $4 Year 4 $4 Total 2. What method…
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Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $671,400. The equipment was expected to have a useful life of four years, or 8,000 operating hours, and a residual value of $55,400. The equipment was used for 2,800 hours during Year 1, 1,680 hours in Year 2, 2,240 hours in Year 3, and 1,280 hours in Year 4. Required: 1. Determine the amount of depreciation expense for the four years ending December 31 by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the four years by each method. Round the answer for each year to the nearest whole dollar. Depreciation Expense Units-of-Activity Method Year Straight-Line Method Double-Declining- Balance Method Year 1 $ Year 2 $ $ $ Year 3 $ $ $ Year 4 $ $ $ Total $ $ $ 2. What method yields the highest depreciation expense for Year 1? 3. What method yields the most depreciation over the…
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Revision of depreciation Equipment with a cost of $354,400 has an estimated residual value of $40,800, has an estimated useful life of 32 years, and is depreciated by the straight-line method. a. Determine the amount of the annual depreciation. 9,800 ✔ b. Determine the book value after 18 full years of use. $ 178,000 ✓ c. Assuming that at the start of the year 19 the remaining life is estimated to be 18 years and the residual value is estimated to be $34,000, determine the depreciation expense for each of the remaining 18 years.
1
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