On July 1, Harding Construction purchases a bulldozer for $228,000. The equipment has an 8-year life with a residual value of $16,000. Harding uses straight-line depreciation. a1. Calculate the depreciation expense for the first year ending December 31. a2. Provide the journal entry for the first year ending December 31. If an amount box does not require an entry, leave it blank. Dec. 31 b. Calculate the third year's depreciation expense and provide the journal entry for the third year ending December 31. If an amount box does not require an entry, leave it blank. Dec. 31 c1. Calculate the last year's depreciation expense. c2. Provide the journal entry for the last year. If an amount box does not require an entry, leave it blank.
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.
![On July 1, Harding Construction purchases a bulldozer for $228,000. The equipment has an 8-year life with a residual value of $16,000. Harding uses straight-line depreciation.
a1. Calculate the depreciation expense for the first year ending December 31.
2$
a2. Provide the journal entry for the first year ending December 31. If an amount box does not require an entry, leave it blank.
Dec. 31
b. Calculate the third year's depreciation expense and provide the journal entry for the third year ending December 31. If an amount box does not require an entry, leave it blank.
Dec. 31
c1. Calculate the last year's depreciation expense.
2$
c2. Provide the journal entry for the last year. If an amount box does not require an entry, leave it blank.
Dec. 31](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0cfcdf39-9cb9-4d14-8e9c-b91cf16b8a6d%2Fa33104e0-3ce5-4cb9-8bb0-9eaad1176a7d%2Fl9udmkn_processed.png&w=3840&q=75)
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