Partial-year depreciationEquipment acquired at a cost of $86,000 has an estimated residual value of $5,000 and an estimated useful life of 10 years. It wasplaced in service on April 1 of the current fiscal year, which ends on December 31. When required, round your answers to twodecimal places.a. Determine the depreciation for the current fiscal year and for the following fiscal year by the straight-line method.Year 1 SYear 2DepreciationYear 2b. Determine the depreciation for the current fiscal year and for the following fiscal year by the double-declining-balance method.Year 1 $6,075DepreciationSX12,900 ✓X

a) Depreciation under Straight Line MethodYear 1$6,075Year 2$8,100b) Depreciation under Double…

Answered: Partial-year depreciation Equipment…

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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Partial-year depreciation Equipment acquired at a cost of $110,000 has an estimated residual value of $7,000 and an estimated useful life of 10 years. It was placed into service on May 1 of t current fiscal year, which ends on December 31. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. X Open spreadsheet a. Determine the depreciation for the current fiscal year and for the following fiscal year by the straight-line method. Round your answers to the nearest dollar. Year 1 Year 2 Year 1 Depreciation Year 2 $ b. Determine the depreciation for the current fiscal year and for the following fiscal year by the double-declining-balance method. Do not round the double-declin balance rate. Round your answers to the nearest dollar. Depreciation $ Incorrect $
Depreciation by Two Methods A storage tank acquired at the beginning of the fiscal year at a cost of $75,000 has an estimated residual value of $4,500 and an estimated useful life of five years. a. Determine the amount of annual depreciation by the straight-line method. b. Determine the amount of depreciation for the first and second years computed by the double-declining-balance method. Do not round the double-declining balance rate. If required, round your answers to the nearest dollar. Depreciation Year 1 Year 2
Entries for Sale of Fixed Asset Equipment acquired on January 8 at a cost of $107,330 has an estimated useful life of 12 years, has an estimated residual value of $7,850, and is depreciated by the straight-line method. a. What was the book value of the equipment at December 31 the end of the fourth year?$fill in the blank b. Assume that the equipment was sold on April 1 of the fifth year for $65,642. 1. Journalize the entry to record depreciation for the three months until the sale date. If an amount box does not require an entry, leave it blank. Round your answers to the nearest whole dollar if required. - Select - - Select - - Select - - Select - 2. Journalize the entry to record the sale of the equipment. If an amount box does not require an entry, leave it blank. Do not round intermediate calculations. - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select -
Straight-Line, Declining-Balance, Sum-Of-The-Years'-Digits, and MACRS Methods A machine is purchased January 1 at a cost of $59,000. It is expected to serve for eight years and have a salvage value of $3,000. Required: 1. Prepare a schedule showing depreciation for each year and the book value at the end of each year using the following methods a. Straight-line
A piece of heavy equipment acquired on January 1 at a cost of $180,000 has an estimated useful life of 25 years. Assuming that it will have no residual value. a. Determine the depreciation for each of the first two years ending December 31 by the straight-line method. Round your answer to the nearest cent if rounding is required. Depreciation First year $fill in the blank 1 Second year $fill in the blank 2 b. Determine the depreciation for each of the first two years ending December 31 by the double-declining-balance method. Round your answer to the nearest cent if rounding is required. Depreciation First year $fill in the blank 3 Second year $fill in the blank 4
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Depreciation by Three Methods; Partial Years Layton Company purchased tool sharpening equipment on October 1 for $37,800. The equipment was expected to have a useful life of three years or 4,320 operating hours, and a residual value of $1,080. The equipment was used for 800 hours during Year 1, 1,500 hours in Year 2, 1,300 hours in Year 3, and 720 hours in Year 4. Required: Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Note: FOR DECLINING BALANCE ONLY, round the multiplier to four decimal places. Then round the answer for each year to the nearest whole dollar. a. Straight-line method Year Amount Year 1 $fill in the blank 1 Year 2 $fill in the blank 2 Year 3 $fill in the blank 3 Year 4 $fill in the blank 4 b. Units-of-activity method Year Amount Year 1 $fill in the blank 5 Year 2 $fill…
Instructions Equipment acquired on January 6 at a cost of $532,255, has an estimated useful life of 19 years and an estimated residual value of $60,010. A. What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation? B. What was the book value of the equipment on January 1 of Year 4? C. Assuming that the equipment was sold on January 3 of Year 4 for $441,935, journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of account titles. D. Assuming that the equipment had been sold on January 3 of Year 4 for $473,200 instead of $441,935, journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of account titles. A. What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation? Year 1 depreciation expense $ Year 2 depreciation expense Year 3 depreciation expense $ $ B. What was the book value of the equipment on January 1 of Year 4?…
Units-of-activity Depreciation A truck acquired at a cost of $250,000 has an estimated residual value of $15,500, has an estimated useful life of 35,000 miles, and was driven 3,200 miles during the year. Determine the following. If required, round your answer for the depreciation rate to two decimal places. (a) The depreciable cost (b) The depreciation rate %24 per mile (c) The units-of-activity depreciation for the year
Partial-Year Depreciation Equipment acquired at a cost of $97,000 has an estimated residual value of $6,000 and an estimated usef life of 10 years. It was placed in service on October 1 of the current fiscal year, which ends on December 3 If necessary, round your answers to the nearest cent. a. Determine the depreciation for the current fiscal year and for the following fiscal year by the straight-li method. Depreciation Year 1 Year 2 b. Determine the depreciation for the current fiscal year and for the following fiscal year by the double- declining-balance method. Depreciation Year 1 2$4 Year 2 eck My Work Previous Ne All work saved. Save and Exit Submit Assignment for
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STRAIGHT-LINE DEPRECIATION A small delivery truck was purchased on January 1 at a cost of $25,000. It has an estimated useful life of four years and an estimated salvage value of $5,000. Prepare a depreciation schedule showing the depreciation expense, accumulated depreciation, and book value for each year under the straight-line method.

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