Sunland Company acquired a plant asset at the beginning of Year 1. The asset has an estimated service life of 5 years. An employee has prepared depreciation schedules for this asset using three different methods to compare the results of using one method with th results of using other methods. You are to assume that the following schedules have been correctly prepared for this asset using (1) the straight-line method, (2) the sum-of-the-years'-digits method, and (3) the double-declining-balance method. Sum-of-the- Double-Declining- Year Straight-Line Years'-Digits Balance 1 $ 11,340 $ 18,900 $ 25,200 2 11,340 15,120 15,120 3 11,340 11,340 9,072 4 11,340 7,560 5,443 11,340 3,780 1,865 * E4 700
Sunland Company acquired a plant asset at the beginning of Year 1. The asset has an estimated service life of 5 years. An employee has prepared depreciation schedules for this asset using three different methods to compare the results of using one method with th results of using other methods. You are to assume that the following schedules have been correctly prepared for this asset using (1) the straight-line method, (2) the sum-of-the-years'-digits method, and (3) the double-declining-balance method. Sum-of-the- Double-Declining- Year Straight-Line Years'-Digits Balance 1 $ 11,340 $ 18,900 $ 25,200 2 11,340 15,120 15,120 3 11,340 11,340 9,072 4 11,340 7,560 5,443 11,340 3,780 1,865 * E4 700
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter5: Adjusting Entries And The Work Sheet
Section: Chapter Questions
Problem 1MC: LO1 The purpose of depreciation is to (a) spread the cost of an asset over its useful life. (b) show...
Related questions
Concept explainers
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.
Topic Video
Question
100%
![What amount, if any, was used in the depreciation calculations for the salvage value for this asset?
Salvage value
$
%24](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7c90e654-ccda-43a1-acc1-728dd6160a3d%2Fe9766cab-d33d-4f43-8ef0-2e5d7d624dfe%2Fv2993lp_processed.png&w=3840&q=75)
Transcribed Image Text:What amount, if any, was used in the depreciation calculations for the salvage value for this asset?
Salvage value
$
%24
![Sunland Company acquired a plant asset at the beginning of Year 1. The asset has an estimated service life of 5 years. An employee
has prepared depreciation schedules for this asset using three different methods to compare the results of using one method with the
results of using other methods. You are to assume that the following schedules have been correctly prepared for this asset using (1)
the straight-line method, (2) the sum-of-the-years'-digits method, and (3) the double-declining-balance method.
Sum-of-the-
Double-Declining-
Year
Straight-Line
Years'-Digits
Balance
1
$ 11,340
$ 18,900
$ 25,200
2
11,340
15,120
15,120
11,340
11,340
9,072
4
11,340
7,560
5,443
5
11,340
3,780
1,865
Total
$ 56,700
$ 56,700
$ 56,700](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7c90e654-ccda-43a1-acc1-728dd6160a3d%2Fe9766cab-d33d-4f43-8ef0-2e5d7d624dfe%2F9jxudu_processed.png&w=3840&q=75)
Transcribed Image Text:Sunland Company acquired a plant asset at the beginning of Year 1. The asset has an estimated service life of 5 years. An employee
has prepared depreciation schedules for this asset using three different methods to compare the results of using one method with the
results of using other methods. You are to assume that the following schedules have been correctly prepared for this asset using (1)
the straight-line method, (2) the sum-of-the-years'-digits method, and (3) the double-declining-balance method.
Sum-of-the-
Double-Declining-
Year
Straight-Line
Years'-Digits
Balance
1
$ 11,340
$ 18,900
$ 25,200
2
11,340
15,120
15,120
11,340
11,340
9,072
4
11,340
7,560
5,443
5
11,340
3,780
1,865
Total
$ 56,700
$ 56,700
$ 56,700
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![College Accounting, Chapters 1-27](https://www.bartleby.com/isbn_cover_images/9781337794756/9781337794756_smallCoverImage.gif)
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
![College Accounting, Chapters 1-27](https://www.bartleby.com/isbn_cover_images/9781337794756/9781337794756_smallCoverImage.gif)
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,