Required informationProblem 7-58 (Algo) Determine depreciation under three methods (LO7-4)[The following information applies to the questions displayed below.]Quick Copy purchased a new copy machine. The new machine cost $106,000 including installation. The companyestimates the equipment will have a residual value of $26,500. Quick Copy also estimates it will use the machine for fouryears or about 8,000 total hours. Actual use per year was as follows:Year12Year1234Problem 7-5B (Algo) Part 33. Prepare a depreciation schedule for four years using the activity-based method. (Round your "Depreciation Rate" to 3 decimalplaces and use this amount in all subsequent calculations. Round answers to the nearest whole dollar.)34TotalHours Used2,8002,0002,0003,200$QUICK COPYDepreciation Schedule-Activity-BasedEnd of Year AmountsDepreciationExpense0AccumulatedDepreciationBook Value

Depreciation expense is the non-cash expense charged on the non-current assets. It is reported on…

Quick Copy purchased a new copy machine. The new machine cost $106,000 including installation. The company estimates the equipment will have a residual value of $26,500. Quick 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 Year 1 2 3 Problem 7-58 (Algo) Part 3 3. Prepare a depreciation schedule for four years using the activity-based method. (Round your "Depreciation Rate" to 3 decimal places and use this amount in all subsequent calculations. Round answers to the nearest whole dollar) 1 2 3 4 Total Hours Used 2,800 2,000 2,000 3,200 S QUICK COPY Depreciation Schedule-Activity-Based End of Year Amounts Depreciation Expense Accumulated Depreciation Book Value

Quick Copy purchased a new copy machine. The new machine cost $106,000 including installation. The company estimates the equipment will have a residual value of $26,500. Quick 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 Year 1 2 3 Problem 7-58 (Algo) Part 3 3. Prepare a depreciation schedule for four years using the activity-based method. (Round your "Depreciation Rate" to 3 decimal places and use this amount in all subsequent calculations. Round answers to the nearest whole dollar) 1 2 3 4 Total Hours Used 2,800 2,000 2,000 3,200 S QUICK COPY Depreciation Schedule-Activity-Based End of Year Amounts Depreciation Expense Accumulated Depreciation Book Value

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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[The following information applies to the questions displayed below.] Quick Copy purchased a new copy machine. The new machine cost $106,000 including installation. The company estimates the equipment will have a residual value of $26,500. Quick 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 1 2,800 2 2,000 3 2,000 4 3,200 Problem 7-5B (Algo) Part 3 3. Prepare a depreciation schedule for four years using the activity-based method. (Round your "Depreciation Rate" to 3 decimal places and use this amount in all subsequent calculations. Round answers to the nearest whole dollar.) > Answer is complete but not entirely correct. QUICK COPY Depreciation Schedule-Activity-Based End of Year Amounts Depreciation Accumulated Year 1 Book Value Expense Depreciation $ 27,825 $ 27,825 $ 78,175 2 19,876 47,700 58,325 X 3 19,876 67,575 38,450 x 4 31,800 x 99,375 5,125 x Total $ 99,377
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