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Pedro Company has $162,000 of machinery being depreciated over 5 years. There is no estimable residual value after that. After taking 2 years depreciation, Pedro realizes the equipment is clearly going to last another 4 years and the estimated residual value remains unchanged. Required 1: What depreciation expense will Pedro record in year 2 when using the straight line method? $ [ Required 2: What depreciation expense will Pedro record in year 3 when using the straight line method? $ Required 3: What depreciation expense will Pedro record in year 2 when using the declining balance method? $

Pedro Company has $162,000 of machinery being depreciated over 5 years. There is no estimable residual value after that. After taking 2 years depreciation, Pedro realizes the equipment is clearly going to last another 4 years and the estimated residual value remains unchanged. Required 1: What depreciation expense will Pedro record in year 2 when using the straight line method? $ [ Required 2: What depreciation expense will Pedro record in year 3 when using the straight line method? $ Required 3: What depreciation expense will Pedro record in year 2 when using the declining balance method? $

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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Pedro Company has $162,000 of machinery being depreciated over 5 years. There is no estimable residual value after that. After taking 2 years depreciation, Pedro realizes the equipment is clearly going to last another 4 years and the estimated residual value remains unchanged. Required 1: What depreciation expense will Pedro record in year 2 when using the straight line method? $ Required 2: What depreciation expense will Pedro record in year 3 when using the straight line method? $ Required 3: What depreciation expense will Pedro record in year 2 when using the declining balance method? $ Required 4: What depreciation expense will Pedro record in year 3 when using the declining balance method? $ Required 5: What depreciation expense will Pedro record in year 2 when using the double declining balance method? $ Required 6: What depreciation expense will Pedro record in year 3 when using the double declining balance method? $
Transcribed Image Text:Pedro Company has $162,000 of machinery being depreciated over 5 years. There is no estimable residual value after that. After taking 2 years depreciation, Pedro realizes the equipment is clearly going to last another 4 years and the estimated residual value remains unchanged. Required 1: What depreciation expense will Pedro record in year 2 when using the straight line method? $ Required 2: What depreciation expense will Pedro record in year 3 when using the straight line method? $ Required 3: What depreciation expense will Pedro record in year 2 when using the declining balance method? $ Required 4: What depreciation expense will Pedro record in year 3 when using the declining balance method? $ Required 5: What depreciation expense will Pedro record in year 2 when using the double declining balance method? $ Required 6: What depreciation expense will Pedro record in year 3 when using the double declining balance method? $
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