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Pedro Company has $199,500 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? $ 39900 Required 2: What depreciation expense will Pedro record in year 3 when using the straight line method? $ 29925 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? $ 29925 Required 5: What depreciation expense will Pedro record in year 2 when using the double declining balance method? $ 47880 Required 6: What depreciation expense will Pedro record in year 3 when using the double declining balance method? $ 59850 31920

Pedro Company has $199,500 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? $ 39900 Required 2: What depreciation expense will Pedro record in year 3 when using the straight line method? $ 29925 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? $ 29925 Required 5: What depreciation expense will Pedro record in year 2 when using the double declining balance method? $ 47880 Required 6: What depreciation expense will Pedro record in year 3 when using the double declining balance method? $ 59850 31920

FINANCIAL ACCOUNTING
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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Pedro Company has $199,500 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? $ 39900 Required 2: What depreciation expense will Pedro record in year 3 when using the straight line method? $ 29925 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? $ 29925 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? $ 31920 47880 59850
Transcribed Image Text:Pedro Company has $199,500 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? $ 39900 Required 2: What depreciation expense will Pedro record in year 3 when using the straight line method? $ 29925 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? $ 29925 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? $ 31920 47880 59850
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