Stake Technology Inc. calculates depreciation to the nearest whole month. Please complete the schedule. Round depreciation per unit of production to the nearest cent. Cost Information Depreciation Accum. Dep. Dep. Expense Accum. Dep. Dec. 31, 2013 for 2014 271,000 Description Purchase Date Depreciation Method Cost Residual Life Dec. 31, 2014 Equipment May 3, 2010 Straight-line Machinery May 3, 2013 154,000 10,000 5 years Double-declining balance 120,000 10,000 5 years Enter x Cancet Trucks Units of production 286,900 10,000 923,000 km July 5, 2012 There have been no disposals or subsequent capital expenditures on the asset since the date of purchase. The kilometres the truck was actually driven were as follows: 2012:271,000 2013:273,000 2014:147,000 For simplicity, assume that the asset is depreciated as an individual item and will not be broken down into parts and depreciated.
Stake Technology Inc. calculates depreciation to the nearest whole month. Please complete the schedule. Round depreciation per unit of production to the nearest cent. Cost Information Depreciation Accum. Dep. Dep. Expense Accum. Dep. Dec. 31, 2013 for 2014 271,000 Description Purchase Date Depreciation Method Cost Residual Life Dec. 31, 2014 Equipment May 3, 2010 Straight-line Machinery May 3, 2013 154,000 10,000 5 years Double-declining balance 120,000 10,000 5 years Enter x Cancet Trucks Units of production 286,900 10,000 923,000 km July 5, 2012 There have been no disposals or subsequent capital expenditures on the asset since the date of purchase. The kilometres the truck was actually driven were as follows: 2012:271,000 2013:273,000 2014:147,000 For simplicity, assume that the asset is depreciated as an individual item and will not be broken down into parts and depreciated.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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Transcribed Image Text:At December 31, 2013 Stake Technology Inc.'s
balance sheet showed plant and equipment
information as detailed in the schedule below.
Stake Technology Inc. calculates depreciation
to the nearest whole month.
Please complete the schedule. Round
depreciation per unit of production to the
nearest cent.
Cost Information
Depreciation
Accum. Dep. Dep. Expense Accum. Dep.
Dec. 31, 2013 for 2014
Description Purchase Date Depreciation Method Cost Residual
Equipment May 3, 2010
Life
Dec. 31, 2014
Straight-line
154,000 10,000
5 years
271,000
Machinery May 3, 2013
Double-declining
balance
120,000 10,000
5 years
V Enter
x Cancel
Units of production
Trucks
July 5, 2012
286,900 10,000 923,000 km
There have been no disposals or subsequent
capital expenditures on the asset since the
date of purchase.
The kilometres the truck was actually driven
were as follows:
2012:271,000
2013:273,000
2014:147,000
For simplicity, assume that the asset is
depreciated as an individual item and will not
be broken down into parts and depreciated.
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