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On April 22, 2023, Carla Vista Enterprises purchased equipment for $136,500. The company expects to use the equipment for 12,500 working hours during its four-year life and that it will have a residual value of $14,000. Carla Vista has a December 31 year end and pro-rates depreciation to the nearest month. The actual machine usage was: 1,900 hours in 2023; 2.700 hours in 2024; 3,900 hours in 2025: 2,900 hours in 2026; and 1,300 hours in 2027.

On April 22, 2023, Carla Vista Enterprises purchased equipment for $136,500. The company expects to use the equipment for 12,500 working hours during its four-year life and that it will have a residual value of $14,000. Carla Vista has a December 31 year end and pro-rates depreciation to the nearest month. The actual machine usage was: 1,900 hours in 2023; 2.700 hours in 2024; 3,900 hours in 2025: 2,900 hours in 2026; and 1,300 hours in 2027.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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On April 22, 2023, Carla Vista Enterprises purchased equipment for $136,500. The company expects to use the equipment for 12,500 working hours during its four-year life and that it will have a residual value of $14,000. Carla Vista has a December 31 year end and pro-rates depreciation to the nearest month. The actual machine usage was: 1,900 hours in 2023; 2,700 hours in 2024; 3,900 hours in 2025: 2,900 hours in 2026; and 1,300 hours in 2027.
Transcribed Image Text:On April 22, 2023, Carla Vista Enterprises purchased equipment for $136,500. The company expects to use the equipment for 12,500 working hours during its four-year life and that it will have a residual value of $14,000. Carla Vista has a December 31 year end and pro-rates depreciation to the nearest month. The actual machine usage was: 1,900 hours in 2023; 2,700 hours in 2024; 3,900 hours in 2025: 2,900 hours in 2026; and 1,300 hours in 2027.
Prepare a depreciation schedule for the life of the asset under the double diminishing-balance method. (Round partial-period depreciation rate to 4 decimal palces, e.g. 15.2563 % and other answers to O decimal places, e.g. 5,276.) Year 2023 2024 2025 2026 $ Carrying Amount Beginning of Year 136,500 34,125 Depr. Rate 50 % 50 % 0 50 % 50 % x $ G Depr. Rate O Show Transcribed Text Depr. Expense 51,188 50 % 20,125 50 % 0 50 Prepare a depreciation schedule for the life of the asset under the double diminishing-balance method. (Round partial-period depreciation rate to 4 decimal palces, eg. 15.2563 % and other answers to O decimal places, e.g. 5,276.) % 50 % $ $ C Accum. Depr. Depr. Expense End of Year 122.500 122.500 51,188 20,125 0 $ Carrying Amount 34,125 14,000 14.000 Accum Depr.
Transcribed Image Text:Prepare a depreciation schedule for the life of the asset under the double diminishing-balance method. (Round partial-period depreciation rate to 4 decimal palces, e.g. 15.2563 % and other answers to O decimal places, e.g. 5,276.) Year 2023 2024 2025 2026 $ Carrying Amount Beginning of Year 136,500 34,125 Depr. Rate 50 % 50 % 0 50 % 50 % x $ G Depr. Rate O Show Transcribed Text Depr. Expense 51,188 50 % 20,125 50 % 0 50 Prepare a depreciation schedule for the life of the asset under the double diminishing-balance method. (Round partial-period depreciation rate to 4 decimal palces, eg. 15.2563 % and other answers to O decimal places, e.g. 5,276.) % 50 % $ $ C Accum. Depr. Depr. Expense End of Year 122.500 122.500 51,188 20,125 0 $ Carrying Amount 34,125 14,000 14.000 Accum Depr.
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