PLEASE NOTE: All whole dollar amounts using "$" with commas as needed (i.e. $12,345).[HINT - You definitely will want to use this EXCEL spreadsheet Chapter11 Depreciation Schedules.xlsx Download Chapter11 Depreciation Schedules.xlsxto assist in your calculations.]Straight-Line Depreciation Method: Office Mart purchases a photocopier for $70,000. The photocopier has a salvage value of $7,000 and has expected life of seven years. Office Mart uses the straight-line depreciation method.Calculate the annual depreciation expense.What is the year one book value?What is the year three book value?What is the year six accumulated depreciation?Units-of-Production Depreciation Method: Office Mart purchases a photocopier for $70,000. The photocopier has a salvage value of $7,000 and is expected to produce 787,500 copies over its life. Office Mart uses the units-of-production depreciation method and the expected copies per year for the eight years are:115,000 copies.119,250 copies.124,000 copies.114,250 copies.111,250 copies.105,750 copies.98,000 copies.What is the depreciable cost per copy? (round to two decimal places and format per text)Calculate the year one depreciation expense.What is the year one book value?Calculate the year three depreciation expense.What is the year three book value?What is the year six accumulated depreciation?Double-Declining-Balance Depreciation Method: Office Mart purchases a photocopier for $70,000. The photocopier has a salvage value of $7,000 and has expected life of seven years. Office Mart uses the double-declining-balance depreciation method. (NOTE: Use the DDB Rate in the EXCEL spreadsheet and round the rate to three decimal places.)Calculate the year one depreciation expense.What is the year one book value?Calculate the year three depreciation expense.What is the year three book value?What is the year six accumulated depreciation?In what year is a "plug" amount used instead of the formula to calculate the depreciation expense? Year (just type the number)How much is that "plug" amount?

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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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PLEASE NOTE: All whole dollar amounts using "$" with commas as needed (i.e. $12,345).

[HINT - You definitely will want to use this EXCEL spreadsheet Chapter11 Depreciation Schedules.xlsx Download Chapter11 Depreciation Schedules.xlsxto assist in your calculations.]

Straight-Line Depreciation Method: Office Mart purchases a photocopier for $70,000. The photocopier has a salvage value of $7,000 and has expected life of seven years. Office Mart uses the straight-line depreciation method.

Calculate the annual depreciation expense.
What is the year one book value?
What is the year three book value?
What is the year six accumulated depreciation?

Units-of-Production Depreciation Method: Office Mart purchases a photocopier for $70,000. The photocopier has a salvage value of $7,000 and is expected to produce 787,500 copies over its life. Office Mart uses the units-of-production depreciation method and the expected copies per year for the eight years are:

115,000 copies.
119,250 copies.
124,000 copies.
114,250 copies.
111,250 copies.
105,750 copies.
98,000 copies.

What is the depreciable cost per copy? (round to two decimal places and format per text)
Calculate the year one depreciation expense.
What is the year one book value?
Calculate the year three depreciation expense.
What is the year three book value?
What is the year six accumulated depreciation?

Double-Declining-Balance Depreciation Method: Office Mart purchases a photocopier for $70,000. The photocopier has a salvage value of $7,000 and has expected life of seven years. Office Mart uses the double-declining-balance depreciation method. (NOTE: Use the DDB Rate in the EXCEL spreadsheet and round the rate to three decimal places.)

Calculate the year one depreciation expense.
What is the year one book value?
Calculate the year three depreciation expense.
What is the year three book value?
What is the year six accumulated depreciation?
In what year is a "plug" amount used instead of the formula to calculate the depreciation expense? Year (just type the number)
How much is that "plug" amount?

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