! Required information Exercise 11-3 (Algo) Depreciation methods; partial periods [LO11-2] [The following information applies to the questions displayed below.] On October 1, 2024, the Allegheny Corporation purchased equipment for $245,000. The estimated service life of the equipment is 10 years and the estimated residual value is $3,000. The equipment is expected to produce 440,000 units during its life. Required: Calculate depreciation for 2024 and 2025 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service. Exercise 11-3 (Algo) Part 2 2. Double-declining-balance. Formula Amount for 2024 Amount for 2025 Beginning Book Value $ Double-Declining-Balance Method * Double the Straight-line Rate 245,000 * x % x % x Fraction of Year = Depreciation Expense II
! Required information Exercise 11-3 (Algo) Depreciation methods; partial periods [LO11-2] [The following information applies to the questions displayed below.] On October 1, 2024, the Allegheny Corporation purchased equipment for $245,000. The estimated service life of the equipment is 10 years and the estimated residual value is $3,000. The equipment is expected to produce 440,000 units during its life. Required: Calculate depreciation for 2024 and 2025 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service. Exercise 11-3 (Algo) Part 2 2. Double-declining-balance. Formula Amount for 2024 Amount for 2025 Beginning Book Value $ Double-Declining-Balance Method * Double the Straight-line Rate 245,000 * x % x % x Fraction of Year = Depreciation Expense II
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2A
![Required information
Exercise 11-3 (Algo) Depreciation methods; partial periods [LO11-2]
[The following information applies to the questions displayed below.]
On October 1, 2024, the Allegheny Corporation purchased equipment for $245,000. The estimated service life of the
equipment is 10 years and the estimated residual value is $3,000. The equipment is expected to produce 440,000 units
during its life.
Required:
Calculate depreciation for 2024 and 2025 using each of the following methods. Partial-year depreciation is calculated
based on the number of months the asset is in service.
Exercise 11-3 (Algo) Part 2
2. Double-declining-balance.
Formula
Amount for 2024
Amount for 2025
Beginning Book Value
$
245,000
x
x
Double-Declining-Balance Method
Double the Straight-line Rate
%
%
x Fraction of Year = Depreciation Expense
=
=](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F413c0a04-5890-42a3-84f7-6623c94441fd%2F0654f5f6-94bc-4703-9c74-7362e11aa805%2Fxx1jmzh_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
Exercise 11-3 (Algo) Depreciation methods; partial periods [LO11-2]
[The following information applies to the questions displayed below.]
On October 1, 2024, the Allegheny Corporation purchased equipment for $245,000. The estimated service life of the
equipment is 10 years and the estimated residual value is $3,000. The equipment is expected to produce 440,000 units
during its life.
Required:
Calculate depreciation for 2024 and 2025 using each of the following methods. Partial-year depreciation is calculated
based on the number of months the asset is in service.
Exercise 11-3 (Algo) Part 2
2. Double-declining-balance.
Formula
Amount for 2024
Amount for 2025
Beginning Book Value
$
245,000
x
x
Double-Declining-Balance Method
Double the Straight-line Rate
%
%
x Fraction of Year = Depreciation Expense
=
=
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