Sonic Corporation purchased and installed electronic payment equipment at its drive-in restaurants in San Marcos, TX, at a cost of $32,400. The equipment has an estimated residual value of $1,500. The equipment is expected to process 258,000 payments over its three-year useful life. Per year, expected payment transactions are 61,920, year 1; 141,900, year 2; and 54,180, year 3. Required: Complete a depreciation schedule for each of the alternative methods. Straight-line. Units-of-production. Double-declining-balance. Required 1 Complete a depreciation schedule for the straight-line method. (Do not round intermediate calculations.) Income Statement Year Required 2 Required 3 At acquisition 1 2 3 Depreciation Expense Cost Balance Sheet Accumulated Depreciation Book Value

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 $32,400. The equipment has
an estimated residual value of $1,500. The equipment
is expected to process 258,000 payments over its
three-year useful life. Per year, expected payment
transactions are 61,920, year 1; 141,900, year 2; and
54,180, year 3.
Required:
Complete a depreciation schedule for each of the
alternative methods.
1. Straight-line.
2. Units-of-production.
3. Double-declining-balance.
Required 1
Year
Complete a depreciation schedule for the straight-line method. (Do not round intermediate calculations.)
Income
Statement
At acquisition
1
Required 2
2
3
Required 3
Depreciation
Expense
Cost
Balance Sheet
Accumulated
Depreciation
Book Value
Transcribed Image Text:Sonic Corporation purchased and installed electronic payment equipment at its drive-in restaurants in San Marcos, TX, at a cost of $32,400. The equipment has an estimated residual value of $1,500. The equipment is expected to process 258,000 payments over its three-year useful life. Per year, expected payment transactions are 61,920, year 1; 141,900, year 2; and 54,180, year 3. Required: Complete a depreciation schedule for each of the alternative methods. 1. Straight-line. 2. Units-of-production. 3. Double-declining-balance. Required 1 Year Complete a depreciation schedule for the straight-line method. (Do not round intermediate calculations.) Income Statement At acquisition 1 Required 2 2 3 Required 3 Depreciation Expense Cost Balance Sheet Accumulated Depreciation Book Value
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