NewTech purchases computer equipment for $260,000 to use in operating activities for the next four years. It estimates the equipment's salvage value at $28,000. pare a table showing depreciation and book value for each of the four years assuming double-declining-balance depreciation. ter all amounts positive values.)
NewTech purchases computer equipment for $260,000 to use in operating activities for the next four years. It estimates the equipment's salvage value at $28,000. pare a table showing depreciation and book value for each of the four years assuming double-declining-balance depreciation. ter all amounts positive values.)
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter18: Accounting For Long-term Assets
Section: Chapter Questions
Problem 3CE: A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years....
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Fill the table
![NewTech purchases computer equipment for $260,000 to use in operating activities for the next four years. It estimates
the equipment's salvage value at $28,000.
Prepare a table showing depreciation and book value for each of the four years assuming double-declining-balance depreciation.
(Enter all amounts positive values.)
Depreciation for the Period
End of Period
Beginning-Year Depreciation
Book Value
Annual
Accumulated
Year-End
Book Value
Year
Rate
Depreciation
Depreciation
260,000
133,500
66,750
Year 1
4% $
28,000
24
133,500 $
133,500
Year 2
28,000
66,750
33,375
4%
66,750
Year 3
4%
28,000
33,375
Year 4
33,375
4%
28,000
16,688
16,688
Total
24
112,000
%24](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb8a104c4-5144-4cc2-b91f-d38a9055f081%2F43d215a5-b46e-4d5e-a338-45b889d42b66%2F4b0ivas_processed.png&w=3840&q=75)
Transcribed Image Text:NewTech purchases computer equipment for $260,000 to use in operating activities for the next four years. It estimates
the equipment's salvage value at $28,000.
Prepare a table showing depreciation and book value for each of the four years assuming double-declining-balance depreciation.
(Enter all amounts positive values.)
Depreciation for the Period
End of Period
Beginning-Year Depreciation
Book Value
Annual
Accumulated
Year-End
Book Value
Year
Rate
Depreciation
Depreciation
260,000
133,500
66,750
Year 1
4% $
28,000
24
133,500 $
133,500
Year 2
28,000
66,750
33,375
4%
66,750
Year 3
4%
28,000
33,375
Year 4
33,375
4%
28,000
16,688
16,688
Total
24
112,000
%24
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