Required information [The following information applies to the questions displayed below] One Stop Copy purchased a new copy machine. The new machine cost $120,000 including installation. The company estimates the equipment will have a residual value of $30,000. One Stop 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 1 2 Year 1 2 3 4 Total 3 4 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.) Hours Used 2,500 2,200 $ 1,900 2,000 S Depreciation Expense ONE STOP COPY Depreciation Schedule-Activity-Based End of Year Amounts 28,125 24,750 21,375 22.500 96.750 Accumulated Depreciation Book Value
Required information [The following information applies to the questions displayed below] One Stop Copy purchased a new copy machine. The new machine cost $120,000 including installation. The company estimates the equipment will have a residual value of $30,000. One Stop 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 1 2 Year 1 2 3 4 Total 3 4 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.) Hours Used 2,500 2,200 $ 1,900 2,000 S Depreciation Expense ONE STOP COPY Depreciation Schedule-Activity-Based End of Year Amounts 28,125 24,750 21,375 22.500 96.750 Accumulated Depreciation Book Value
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter10: Long-lived Tangible And Intangible Assets
Section: Chapter Questions
Problem 19E
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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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