Sonic Corporation purchased and installed electronic payment equipment at its drive-in restaurants in San Marcos, TX, at a cost of $37,800. The equipment has an estimated residual value of $3,000. The equipment is expected to process 266,000 payments over its three-year useful life. Per year, expected payment transactions are 63,840, year 1; 146,300, year 2; and 55,860, year 3. Required: Complete a depreciation schedule for each of the alternative methods. 1. Straight-line. 2. Units-of-production. 3. Double-declining-balance. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Complete a depreciation schedule for the units-of-production method. (Do not round intermediate calculations. Round final answers to the nearest whole dollar.) Income Statement Balance Sheet Year Depreciation Expense Cost Accumulated Depreciation Book Value At acquisition $ 37,800 1 $ 2 $ 8,363 $ 19,166 $ 37,800 $ 8,544 37,800 $ 27,528 $29,436 × $10,272 3 $ 7,272 $ 37,800 $ 34,800 $ 3,000 < Required 1 Required 3 >
Sonic Corporation purchased and installed electronic payment equipment at its drive-in restaurants in San Marcos, TX, at a cost of $37,800. The equipment has an estimated residual value of $3,000. The equipment is expected to process 266,000 payments over its three-year useful life. Per year, expected payment transactions are 63,840, year 1; 146,300, year 2; and 55,860, year 3. Required: Complete a depreciation schedule for each of the alternative methods. 1. Straight-line. 2. Units-of-production. 3. Double-declining-balance. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Complete a depreciation schedule for the units-of-production method. (Do not round intermediate calculations. Round final answers to the nearest whole dollar.) Income Statement Balance Sheet Year Depreciation Expense Cost Accumulated Depreciation Book Value At acquisition $ 37,800 1 $ 2 $ 8,363 $ 19,166 $ 37,800 $ 8,544 37,800 $ 27,528 $29,436 × $10,272 3 $ 7,272 $ 37,800 $ 34,800 $ 3,000 < Required 1 Required 3 >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
$37,800. The equipment has an estimated residual value of $3,000. The equipment is expected to process 266,000 payments over its
three-year useful life. Per year, expected payment transactions are 63,840, year 1; 146,300, year 2; and 55,860, year 3.
Required:
Complete a depreciation schedule for each of the alternative methods.
1. Straight-line.
2. Units-of-production.
3. Double-declining-balance.
Answer is complete but not entirely correct.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3
Complete a depreciation schedule for the units-of-production method. (Do not round intermediate calculations. Round final
answers to the nearest whole dollar.)
Income
Statement
Balance Sheet
Year
Depreciation
Expense
Cost
Accumulated
Depreciation
Book
Value
At
acquisition
$ 37,800
1
$
2
$
8,363 $
19,166 $
37,800
$
8,544
37,800
$ 27,528
$29,436 ×
$10,272
3
$
7,272 $ 37,800
$
34,800
$ 3,000
< Required 1
Required 3 >
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