On April 22, 2023, Cullumber Enterprises purchased equipment for $130,300. The company expects to use the equipment for 11,500 working hours during its four-year life and that it will have a residual value of $13,000. Cullumber has a December 31 year end and pro-rates depreciation to the nearest month. The actual machine usage was: 1,500 hours in 2023; 2,500 hours in 2024; 4,000 hoursin 2025; 2,600 hours in 2026; and 1,100 hours in 2027.(a1)Prepare a depreciation schedule for the life of the asset under the straight-line method. (Round partial-period depreciation rate to 4 decimal palces, e.g. 15.2563% and other answers to O decimal places, e.g. 5,276.)Year2023202420252026Your answer is partially correct.2027$DepreciableAmount117300117300117300117300117300Depr.x Rate11.53 %19.22 %30.7620%8.46 %$Depr.Expense1503025050400802605211022$Accum. Depr.End of Year150304008080160106212117234$CarryingAmount11527090220501402408813066 in 2025; 2, 600 hours in 2026; and 1, 100 hours in 2027. (a1) Your answer is partially correct.Prepare a depreciation schedule for the life of the asset under the straight-line method. (Round partial - period depreciation rate to 4 decimal palces, e.g. 15.2563% and other answersto 0 decimal places, e. g. 5,276.)

Name: On April 22, 2023, Cullumber Enterprises purchased equipment for $130
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Description: On April 22, 2023, Cullumber Enterprises purchased equipment for $130,300. The company expects to use the equipment for 11,500 working hours during its four-year life and that it will have a residual value of $13,000. Cullumber has a December 31 yea

Answer:- Depreciation meaning:- A tangible or physical asset's cost can be dispersed over its useful…

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Accounting

On April 22, 2023, Cullumber Enterprises purchased equipment for $130,300. The company expects to use the equipment for 11.500 working hours during its four-year life and that it will have a residual value of $13,000. Cullumber has a December 31 year end and pro-rates depreciation to the nearest month. The actual machine usage was: 1.500 hours in 2023, 2,500 hours in 2024; 4,000 hours in 2025:2.600 hours in 2026 and 1.100 hours in 2027 (a1) Prepare a depreciation schedule for the life of the asset under the straight-line method. (Round partial-period depreciation rate to 4 decimal palces, eg. 15.2563% and other answers to O decimal places, eg 5,276) End of Year Year 2023 2025 2026 Your answer is partially correct 2027 $ I Depreciable Amount 117300 117300 117300 117300 117300 Depr x Rate 11.50 % 19.22% 30.76 % 20 % . $ Expense 25050 40000 26052 13022 $ Accum Depr 40000 00160 117234 $ Carrying Amount 90220 30140 24088 13066

On April 22, 2023, Cullumber Enterprises purchased equipment for $130,300. The company expects to use the equipment for 11.500 working hours during its four-year life and that it will have a residual value of $13,000. Cullumber has a December 31 year end and pro-rates depreciation to the nearest month. The actual machine usage was: 1.500 hours in 2023, 2,500 hours in 2024; 4,000 hours in 2025:2.600 hours in 2026 and 1.100 hours in 2027 (a1) Prepare a depreciation schedule for the life of the asset under the straight-line method. (Round partial-period depreciation rate to 4 decimal palces, eg. 15.2563% and other answers to O decimal places, eg 5,276) End of Year Year 2023 2025 2026 Your answer is partially correct 2027 $ I Depreciable Amount 117300 117300 117300 117300 117300 Depr x Rate 11.50 % 19.22% 30.76 % 20 % . $ Expense 25050 40000 26052 13022 $ Accum Depr 40000 00160 117234 $ Carrying Amount 90220 30140 24088 13066

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 14P: Hunter Company purchased a light truck on January 2, 2019 for 18,000. The truck, which will be used...

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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.

Topic Video

Question

On April 22, 2023, Cullumber Enterprises purchased equipment for $130,300. The company expects to use the equipment for 11,500 working hours during its four-year life and that it will have a residual value of $13,000. Cullumber has a December 31 year end and pro-rates depreciation to the nearest month. The actual machine usage was: 1,500 hours in 2023; 2,500 hours in 2024; 4,000 hours
in 2025; 2,600 hours in 2026; and 1,100 hours in 2027.
(a1)
Prepare a depreciation schedule for the life of the asset under the straight-line 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
Your answer is partially correct.
2027
$
Depreciable
Amount
117300
117300
117300
117300
117300
Depr.
x Rate
11.53 %
19.22 %
30.76
20
%
8.46 %
$
Depr.
Expense
15030
25050
40080
26052
11022
$
Accum. Depr.
End of Year
15030
40080
80160
106212
117234
$
Carrying
Amount
115270
90220
50140
24088
13066

in 2025; 2, 600 hours in 2026; and 1, 100 hours in 2027. (a1) Your answer is partially correct.
Prepare a depreciation schedule for the life of the asset under the straight-line method. (
Round partial - period depreciation rate to 4 decimal palces, e.g. 15.2563% and other answers
to 0 decimal places, e. g. 5,276.)

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