On January 1, 2023, Creative Calligraphy Inc. purchased land, building, equipment, and tools for a total of $3,220,000. An appraisal identified the fair values to be $808,500 (land), $1,127,000 (building), $441,000 (equipment), and $73,500 (tools). The estimated useful life and residual value of the building was 10 years and $735,000; for the equipment, five years and $49,000; and for the tools, three years and $7,700. Required: Calculate depreciation for 2023 and 2024 using the double-declining-balance method. Creative Calligraphy's year-end is December 31. (Do not round intermediate calculations and round your final answers to nearest whole dollar.) PPE Asset Land Building Equipment Tools 2023 Depreciation 2024 Depreciation 0 $ $ 0
On January 1, 2023, Creative Calligraphy Inc. purchased land, building, equipment, and tools for a total of $3,220,000. An appraisal identified the fair values to be $808,500 (land), $1,127,000 (building), $441,000 (equipment), and $73,500 (tools). The estimated useful life and residual value of the building was 10 years and $735,000; for the equipment, five years and $49,000; and for the tools, three years and $7,700. Required: Calculate depreciation for 2023 and 2024 using the double-declining-balance method. Creative Calligraphy's year-end is December 31. (Do not round intermediate calculations and round your final answers to nearest whole dollar.) PPE Asset Land Building Equipment Tools 2023 Depreciation 2024 Depreciation 0 $ $ 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On January 1, 2023, Creative Calligraphy Inc. purchased land, building, equipment, and tools for a total of $3,220,000. An appraisal
identified the fair values to be $808,500 (land), $1,127,000 (building), $441,000 (equipment), and $73,500 (tools). The estimated useful
life and residual value of the building was 10 years and $735,000; for the equipment, five years and $49,000; and for the tools, three
years and $7,700.
Required:
Calculate depreciation for 2023 and 2024 using the double-declining-balance method. Creative Calligraphy's year-end is December
31. (Do not round intermediate calculations and round your final answers to nearest whole dollar.)
PPE Asset
Land
Building
Equipment
Tools
2023 Depreciation 2024 Depreciation
$
0 $
0
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