Pedro Company has $181,000 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? $ 36200 Required 2: What depreciation expense will Pedro record in year 3 when using the straight line method? $ 27150 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? $ 36200
Pedro Company has $181,000 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? $ 36200 Required 2: What depreciation expense will Pedro record in year 3 when using the straight line method? $ 27150 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? $ 36200
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Could you please answer 4, 5, and 6
![Pedro Company has $181,000 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? $ 36200
Required 2: What depreciation expense will Pedro record in year 3 when using the straight line method? $ 27150
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?
36200
LA](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F04536e59-763c-440c-af8f-4a3fc9711a35%2Ffecfd9ba-f1fc-4434-8370-d773d112d66b%2F2gi9y3ui_processed.png&w=3840&q=75)
Transcribed Image Text:Pedro Company has $181,000 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? $ 36200
Required 2: What depreciation expense will Pedro record in year 3 when using the straight line method? $ 27150
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?
36200
LA
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