!Required informationProblem 7-5B Determine depreciation under three methods (LO7-4)[The following information applies to the questions displayed below.]Cheetah Copy purchased a new copy machine. The new machine cost $110,000 including installation. The companyestimates the equipment will have a residual value of $27,500. Cheetah Copy also estimates it will use the machine forfour years or about 8,000 total hours. Actual use per year was as follows:Hours Used2,0001,6002,0003,200Year124Problem 7-5B Part 22. Prepare a depreciation schedule for four years using the double-declining-balance method. (Hint: The asset will be depreciated inonly two years.) (Do not round your intermediate calculations.)X Answer is complete but not entirely correct.CHEETAΗ COPYDepreciation Schedule-Double-Declining-BalanceEnd of Year AmountsDepreciationAccumulatedYearВook ValueDanreaintionEvnanse Problem 7-5B Part 33. Prepare a depreciation schedule for four years using the activity-based method. (Round your "Depreciation Rate" to 3 decimalplaces and use this amount in all subsequent calculations.)X Answer is complete but not entirely correct.CHEETAH СOPYDepreciation Schedule-Activity-BasedEnd of Year AmountsDepreciationExpenseAccumulatedYearBook ValueDepreciation1$20,6252$20,6252$89,375216,50020,625 X72,875320,62520,62552,250424,75020,62527,500Total$82,500

Problem 7-5B Determine depreciation under three methods (LO7-4) [The following information applies to the questions displayed below.] Cheetah Copy purchased a new copy machine. The new machine cost $110,000 including installation. The company estimates the equipment will have a residual value of $27,500. Cheetah Copy also estimates it will use the machine for four years or about 8,000 total hours. Actual use per year was as follows: Year Hours Used 2,000 1,600 2,000 3,200 1 2 4 Problem 7-5B Part 2 2. Prepare a depreciation schedule for four years using the double-declining-balance method. (Hint: The asset will be depreciated in only two years.) (Do not round your intermediate calculations.)

Problem 7-5B Determine depreciation under three methods (LO7-4) [The following information applies to the questions displayed below.] Cheetah Copy purchased a new copy machine. The new machine cost $110,000 including installation. The company estimates the equipment will have a residual value of $27,500. Cheetah Copy also estimates it will use the machine for four years or about 8,000 total hours. Actual use per year was as follows: Year Hours Used 2,000 1,600 2,000 3,200 1 2 4 Problem 7-5B Part 2 2. Prepare a depreciation schedule for four years using the double-declining-balance method. (Hint: The asset will be depreciated in only two years.) (Do not round your intermediate calculations.)

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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