Exercise 11-03Sunland Company purchased a new plant asset on April 1, 2020, at a cost of $750,000. It was estimated to have a service life of 20 years and a salvage value of $61,200. Sunland' accounting period is the calendar year.Compute the depreciation for this asset for 2020 and 2021 using the sum-of-the-years'-digits method. (Round answers to 0 decimal places, e.g. 45,892.)Depreciation for 2020Depreciation for 2021LINK TO TEXTCompute the depreciation for this asset for 2020 and 2021 using the double-declining-balance method. (Round answers to 0 decimal places, e.g. 45,892.)Depreciation for 2020Depreciation for 2021

Name: Exercise 11-03Sunland Company purchased a new plant asset on April 1,
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Description: Exercise 11-03Sunland Company purchased a new plant asset on April 1, 2020, at a cost of $750,000. It was estimated to have a service life of 20 years and a salvage value of $61,200. Sunland' accounting period is the calendar year.Compute the deprec

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Sunland Company purchased a new plant asset on April 1, 2020, at a cost of $750,000. It was estimated to have a service life of 20 years and a salvage value of $61,200. Sunland' accounting period is the calendar year. Compute the depreciation for this asset for 2020 and 2021 using the sum-of-the-vears'-digits method. (Round answers to o decimal places, eg. 45,892.) Depreciation for 2020 Depreciation for 2021 LINK TO TEXT Compute the depreciation for this asset for 2020 and 2021 using the double-declining-balance method. (Round answers to 0 decimal places, e.g. 45,892.) Depreciation for 2020 Depreciation for 2021

Sunland Company purchased a new plant asset on April 1, 2020, at a cost of $750,000. It was estimated to have a service life of 20 years and a salvage value of $61,200. Sunland' accounting period is the calendar year. Compute the depreciation for this asset for 2020 and 2021 using the sum-of-the-vears'-digits method. (Round answers to o decimal places, eg. 45,892.) Depreciation for 2020 Depreciation for 2021 LINK TO TEXT Compute the depreciation for this asset for 2020 and 2021 using the double-declining-balance method. (Round answers to 0 decimal places, e.g. 45,892.) Depreciation for 2020 Depreciation for 2021

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 5MC: A machine with a 4-year estimated useful life and an estimated 15% residual value was acquired on...

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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.

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Exercise 11-03
Sunland Company purchased a new plant asset on April 1, 2020, at a cost of $750,000. It was estimated to have a service life of 20 years and a salvage value of $61,200. Sunland' accounting period is the calendar year.
Compute the depreciation for this asset for 2020 and 2021 using the sum-of-the-years'-digits method. (Round answers to 0 decimal places, e.g. 45,892.)
Depreciation for 2020
Depreciation for 2021
LINK TO TEXT
Compute the depreciation for this asset for 2020 and 2021 using the double-declining-balance method. (Round answers to 0 decimal places, e.g. 45,892.)
Depreciation for 2020
Depreciation for 2021

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