On July 1, 2023, Yorkton Company purchased for $431,000 equipment having an estimated useful life of ten years with anestimated residual value of $33,000. Depreciation is calculated to the nearest month. The company has a December 31 year-end.Required:Complete the following schedules: (Amount to be deducted should be indicated by a minus sign.)1. Assuming the purchase was made on January 1, 2023.1. Double-declining-balance method:EquipmentLess: Accumulated depreciationYear-end book valueDepreciation expanse for the year2. Straight-line method:EquipmentLess: Accumulated depreciationYear-end book valueDepreciation expense for the year$$$$$$2023431,000 $431,000 $86,200 $431,000 $431,000 $39,800 $2024431,000 $ 431,000431,000 $68,960 S431,000 $2025431,000 $39,800 $431,00055,168431,000ww431,00039,800Check my work

Name: On July 1, 2023, Yorkton Company purchased for $431,000 equipment hav
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Description: On July 1, 2023, Yorkton Company purchased for $431,000 equipment having an estimated useful life of ten years with anestimated residual value of $33,000. Depreciation is calculated to the nearest month. The company has a December 31 year-end.Requir

The expected decline in the value of a fixed asset over the course of its use is called…

Business

Accounting

ng an estimated useful life Péciation is calculated to the nearest month. The company ha Required: Complete the following schedules: (Amount to be deducted should be indicated by a minus sign.) 1. Assuming the purchase was made on January 1, 2023.

ng an estimated useful life Péciation is calculated to the nearest month. The company ha Required: Complete the following schedules: (Amount to be deducted should be indicated by a minus sign.) 1. Assuming the purchase was made on January 1, 2023.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.

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Question

On July 1, 2023, Yorkton Company purchased for $431,000 equipment having an estimated useful life of ten years with an
estimated residual value of $33,000. Depreciation is calculated to the nearest month. The company has a December 31 year-end.
Required:
Complete the following schedules: (Amount to be deducted should be indicated by a minus sign.)
1. Assuming the purchase was made on January 1, 2023.
1. Double-declining-balance method:
Equipment
Less: Accumulated depreciation
Year-end book value
Depreciation expanse for the year
2. Straight-line method:
Equipment
Less: Accumulated depreciation
Year-end book value
Depreciation expense for the year
$
$
$
$
$
$
2023
431,000 $
431,000 $
86,200 $
431,000 $
431,000 $
39,800 $
2024
431,000 $ 431,000
431,000 $
68,960 S
431,000 $
2025
431,000 $
39,800 $
431,000
55,168
431,000
ww
431,000
39,800
Check my work

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