Required information Exercise 11-2 (Algo) Depreciation methods [LO11-2] [The following information applies to the questions displayed below.] On January 1, 2024, the Allegheny Corporation purchased equipment for $134,000. The estimated service life of the equipment is 10 years and the estimated residual value is $2,000. The equipment is expected to produce 240,000 units during its life. Required: Calculate depreciation for 2024 and 2025 using each of the following methods. Exercise 11-2 (Algo) Part 2 2. Double-declining-balance. Formula Amount for 2024 Amount for 2025 Beginning Book Value $ $ Double-Declining-Balance Method x Proportion of Units Produced 203,000 X 192,850 x 20 % 20 % = Depreciation Expense = =
Required information Exercise 11-2 (Algo) Depreciation methods [LO11-2] [The following information applies to the questions displayed below.] On January 1, 2024, the Allegheny Corporation purchased equipment for $134,000. The estimated service life of the equipment is 10 years and the estimated residual value is $2,000. The equipment is expected to produce 240,000 units during its life. Required: Calculate depreciation for 2024 and 2025 using each of the following methods. Exercise 11-2 (Algo) Part 2 2. Double-declining-balance. Formula Amount for 2024 Amount for 2025 Beginning Book Value $ $ Double-Declining-Balance Method x Proportion of Units Produced 203,000 X 192,850 x 20 % 20 % = Depreciation Expense = =
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 5E: Comprehensive: Acquisition, Subsequent Expenditures, and Depreciation On January 2, 2019, Lapar...
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![Required information
Exercise 11-2 (Algo) Depreciation methods [LO11-2]
[The following information applies to the questions displayed below.]
On January 1, 2024, the Allegheny Corporation purchased equipment for $134,000. The estimated service life of the
equipment is 10 years and the estimated residual value is $2,000. The equipment is expected to produce 240,000 units
during its life.
Required:
Calculate depreciation for 2024 and 2025 using each of the following methods.
Exercise 11-2 (Algo) Part 2
2. Double-declining-balance.
Formula
Amount for 2024
Amount for 2025
Beginning Book Value
$
$
Double-Declining-Balance Method
x Proportion of Units Produced
203,000 X
192,850 x
= Depreciation Expense
20% =
20% =](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3ae0248b-d63c-4017-8037-74e15bdfa78c%2F42c2793f-af90-4d69-b83b-fed7549fce1c%2F7f7429f_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
Exercise 11-2 (Algo) Depreciation methods [LO11-2]
[The following information applies to the questions displayed below.]
On January 1, 2024, the Allegheny Corporation purchased equipment for $134,000. The estimated service life of the
equipment is 10 years and the estimated residual value is $2,000. The equipment is expected to produce 240,000 units
during its life.
Required:
Calculate depreciation for 2024 and 2025 using each of the following methods.
Exercise 11-2 (Algo) Part 2
2. Double-declining-balance.
Formula
Amount for 2024
Amount for 2025
Beginning Book Value
$
$
Double-Declining-Balance Method
x Proportion of Units Produced
203,000 X
192,850 x
= Depreciation Expense
20% =
20% =
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