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Sonic Corporation purchased and installed electronic payment equipment at its drive-in restaurants in San Marcos, TX, at a cost of $27,000. The equipment has an estimated residual value of $1,500. The equipment is expected to process 255,000 payments over its three-year useful life. Per year, expected payment transactions are 61,200, year 1; 140,250, year 2; and 53,550, year 3. Required: Complete a depreciation schedule for each of the alternative methods. 1. Straight-line. 2. Units-of-production. 3. Double-declining-balance.

Sonic Corporation purchased and installed electronic payment equipment at its drive-in restaurants in San Marcos, TX, at a cost of $27,000. The equipment has an estimated residual value of $1,500. The equipment is expected to process 255,000 payments over its three-year useful life. Per year, expected payment transactions are 61,200, year 1; 140,250, year 2; and 53,550, year 3. Required: Complete a depreciation schedule for each of the alternative methods. 1. Straight-line. 2. Units-of-production. 3. Double-declining-balance.

FINANCIAL ACCOUNTING
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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Complete a depreciation schedule for the straight-line method. (Do not round Intermediate calculations.) Year At acquisition 1 2 3 Year At acquisition 1 2 3 Income Statement Year Depreciation Expense At acquisition 1 2 3 Complete a depreciation schedule for the units-of-production method. (Do not round intermediate calculations.) Income Statement Depreciation Expense Cost Income Statement Depreciation Expense Cost Balance Sheet Cost Accumulated Depreciation Balance Sheet Complete a depreciation schedule for the double-declining-balance method. (Do not round intermediate calculations.) Accumulated Depreciation Book Value Balance Sheet Accumulated Depreciation Book Value Book Value
Transcribed Image Text:Complete a depreciation schedule for the straight-line method. (Do not round Intermediate calculations.) Year At acquisition 1 2 3 Year At acquisition 1 2 3 Income Statement Year Depreciation Expense At acquisition 1 2 3 Complete a depreciation schedule for the units-of-production method. (Do not round intermediate calculations.) Income Statement Depreciation Expense Cost Income Statement Depreciation Expense Cost Balance Sheet Cost Accumulated Depreciation Balance Sheet Complete a depreciation schedule for the double-declining-balance method. (Do not round intermediate calculations.) Accumulated Depreciation Book Value Balance Sheet Accumulated Depreciation Book Value Book Value
Sonic Corporation purchased and installed electronic payment equipment at its drive-in restaurants in San Marcos, TX, at a cost of $27,000. The equipment has an estimated residual value of $1,500. The equipment is expected to process 255,000 payments over its three-year useful life. Per year, expected payment transactions are 61,200, year 1; 140,250, year 2; and 53,550, year 3. Required: Complete a depreciation schedule for each of the alternative methods. 1. Straight-line. 2. Units-of-production. 3. Double-declining-balance.
Transcribed Image Text:Sonic Corporation purchased and installed electronic payment equipment at its drive-in restaurants in San Marcos, TX, at a cost of $27,000. The equipment has an estimated residual value of $1,500. The equipment is expected to process 255,000 payments over its three-year useful life. Per year, expected payment transactions are 61,200, year 1; 140,250, year 2; and 53,550, year 3. Required: Complete a depreciation schedule for each of the alternative methods. 1. Straight-line. 2. Units-of-production. 3. Double-declining-balance.
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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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