F.seBlossom Company purchased equipment on account on September 3, 2019, at an invoice price of $202,000. On September 4, 2019, itpaid $5,500 for delivery of the equipment. A one-year, $2,005 insurance policy on the equipment was purchased on September 6,2019. On September 20, 2019, Blossom paid $2.500 for installation and testing of the equipment. The equipment was ready for use onOctober 1, 2019.Blossom estimates that the equipment's useful life will be four years, with a residual value of $17,000. It also estimates that, in termsof activity, the equipment's useful life will be 77,200 units. Blossom has a September 30 fiscal year end. Assume that actual usage is asfollows:# of Units15.6203.23.92020,22018,340Prepare depreciation schedules for the life of the asset under the following depreciation methods:1. straight-line2. double diminishing-balanceYearunits-of-production2020Year Ended September 30(Round depreciable amount per unit to 2 decimal places, eg. 5.27 and the final answers to O decimal places, eg. 5,276.)1. STRAIGHT-LINE DEPRECIATION2021202020212022202220232023SDepreciableAmountAccum.Depr.End of YearDepr.RateCarryingAmountSDepr.ExpenseAccum.Depr.

Methods of Depreciation Straight Line Method (SLM): Under SLM method, a fixed portion of asset is…

Answered: Prepare depreciation schedules for the…

Prepare depreciation schedules for the life of the asset under the following depreciation methods: 1. straight-line 2. double diminishing-balance 3. units-of-production

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 57P

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