Now change the Cost, Life of the Asset, and Salvage Value for all of the assets listed in the table in your worksheet to match theinformation below:Asset No.1-0011-0021-0031-0041-0051-0061-007Fixed Asset NameDesktop computer13"LaptopLaptop 15"Tablet4-person WorkstationOffice chairs (set of 4)70" Flat Screen TV-Straight-LineDouble-DecliningStraight-LineDouble-DecliningStraight-LineDouble-DecliningTotal DepreciationYear 1$1,940Cost$1,700$1,100$2,700$ 650Be sure to also check the Cost in both of your Depreciation Method tables in your worksheet so that it matches the updatedinformation.Total AccumulatedDepreciationYear 1$3,100$1,000$1,500Required:2a. Complete the chart below that shows comparisons of the two depreciation methods. (Round your answers to the nearest wholedollar.)Total Net BookValue Year 1Life of Asset5Total DepreciationYear 255510105Total AccumulatedDepreciationYear 2Salvage Value$ 0$ 0Total Net BookValue Year 2Total DepreciationYear 3es es es es eseTotal AccumulatedDepreciationYear 3OOTotal Net BookValue Year 3$ 0$ 0$500$100$250

Name: Now change the Cost, Life of the Asset, and Salvage Value for all of
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Description: Now change the Cost, Life of the Asset, and Salvage Value for all of the assets listed in the table in your worksheet to match theinformation below:Asset No.1-0011-0021-0031-0041-0051-0061-007Fixed Asset NameDesktop computer13"LaptopLaptop 15"Tablet

Straight Line Method (SLM): Under this method, a fixed portion of asset is depreciated each year…

Business

Accounting

Required: 2a. Complete the chart below that shows comparisons of the two depreciation methods. (Round your answers to the nearest whole dollar.) Straight-Line Double-Declining Straight-Line Double-Declining Straight-Line Double-Declining Total Depreciation Year 1 $ 1,940 Total Accumulated Depreciation Year 1 Total Net Book Value Year 1 Total Depreciation Year 2 Total Accumulated Depreciation Year 2 Total Net Book Value Year 2 Total Depreciation Year 3 Total Accumulated Depreciation Year 3 Total Net Book Value Year 3

Required: 2a. Complete the chart below that shows comparisons of the two depreciation methods. (Round your answers to the nearest whole dollar.) Straight-Line Double-Declining Straight-Line Double-Declining Straight-Line Double-Declining Total Depreciation Year 1 $ 1,940 Total Accumulated Depreciation Year 1 Total Net Book Value Year 1 Total Depreciation Year 2 Total Accumulated Depreciation Year 2 Total Net Book Value Year 2 Total Depreciation Year 3 Total Accumulated Depreciation Year 3 Total Net Book Value Year 3

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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Concept explainers

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.

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Question

Now change the Cost, Life of the Asset, and Salvage Value for all of the assets listed in the table in your worksheet to match the
information below:
Asset No.
1-001
1-002
1-003
1-004
1-005
1-006
1-007
Fixed Asset Name
Desktop computer
13"
Laptop
Laptop 15"
Tablet
4-person Workstation
Office chairs (set of 4)
70" Flat Screen TV
-
Straight-Line
Double-Declining
Straight-Line
Double-Declining
Straight-Line
Double-Declining
Total Depreciation
Year 1
$
1,940
Cost
$1,700
$1,100
$2,700
$ 650
Be sure to also check the Cost in both of your Depreciation Method tables in your worksheet so that it matches the updated
information.
Total Accumulated
Depreciation
Year 1
$3,100
$1,000
$1,500
Required:
2a. Complete the chart below that shows comparisons of the two depreciation methods. (Round your answers to the nearest whole
dollar.)
Total Net Book
Value Year 1
Life of Asset
5
Total Depreciation
Year 2
55510105
Total Accumulated
Depreciation
Year 2
Salvage Value
$ 0
$ 0
Total Net Book
Value Year 2
Total Depreciation
Year 3
es es es es ese
Total Accumulated
Depreciation
Year 3
OO
Total Net Book
Value Year 3
$ 0
$ 0
$500
$100
$250

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Step 1: Methods of Depreciation

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Step 2: Straight Line Method Depreciation

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Step 3: Double Declining Depreciation- 1st year

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Step 4: Double Declining Depreciation- 2nd year

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Step 5: Double Declining Depreciation- 3rd year

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