Sonic Corporation purchased and installed electronic payment equipment at its drive-in restaurants in San Marcos, TX, at a cost of $51,300. The equipment has an estimated residual value of $3,300. The equipment is expected to process 267,000 payments over its three-year useful life. Per year, expected payment transactions are 64,080, year 1; 146,850, year 2; and 56,070, year 3. Required: Complete a depreciation schedule for each of the alternative methods. Hint: the cost on the table is the asset cost (original cost). In other words, $51,300. 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 $51,300. The equipment has an estimated residual value of $3,300. The equipment is expected to process 267,000 payments over its three-year useful life. Per year, expected payment transactions are 64,080, year 1; 146,850, year 2; and 56,070, year 3. Required: Complete a depreciation schedule for each of the alternative methods. Hint: the cost on the table is the asset cost (original cost). In other words, $51,300. 1. Straight-line. 2. Units-of-production. 3. Double-declining-balance.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Sonic Corporation purchased and installed electronic payment equipment at its drive-in restaurants in San Marcos, TX, at a cost of
$51,300. The equipment has an estimated residual value of $3,300. The equipment is expected to process 267,000 payments over its
three-year useful life. Per year, expected payment transactions are 64,080, year 1; 146,850, year 2; and 56,070, year 3.
Required:
Complete a depreciation schedule for each of the alternative methods. Hint: the cost on the table is the asset cost (original cost). In
other words, $51,300.
1. Straight-line.
2. Units-of-production.
3. Double-declining-balance.
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