Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] NewTech purchases computer equipment for $261,000 to use in operating activities for the next four years. It estimates the equipment's salvage value at $30,000.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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**Use the following information for the Exercises below. (Algo)**

*[The following information applies to the questions displayed below.]*

NewTech purchases computer equipment for $261,000 to use in operating activities for the next four years. It estimates the equipment's salvage value at $30,000.

---

**Exercise 8-8 (Algo) Double-declining-balance depreciation LO P1**

Prepare a table showing depreciation and book value for each of the four years assuming double-declining-balance depreciation. *(Enter all amounts as positive values.)*

| Year   | Depreciation for the Period                 | End of Period             |
|--------|---------------------------------------------|---------------------------|
|        | Beginning-Year Book Value | Depreciation Rate | Annual Depreciation | Accumulated Depreciation | Year-End Book Value |
| Year 1 |                             |                    |                         |                             |                         |
| Year 2 |                             |                    |                         |                             |                         |
| Year 3 |                             |                    |                         |                             |                         |
| Year 4 |                             |                    |                         |                             |                         |
| Total  |                             |                    |                         |                             |                         |

This table is designed to calculate the depreciation and book value of the equipment over four years using the double-declining-balance method. Input values for each column to compute how the value of the asset decreases annually.
Transcribed Image Text:**Use the following information for the Exercises below. (Algo)** *[The following information applies to the questions displayed below.]* NewTech purchases computer equipment for $261,000 to use in operating activities for the next four years. It estimates the equipment's salvage value at $30,000. --- **Exercise 8-8 (Algo) Double-declining-balance depreciation LO P1** Prepare a table showing depreciation and book value for each of the four years assuming double-declining-balance depreciation. *(Enter all amounts as positive values.)* | Year | Depreciation for the Period | End of Period | |--------|---------------------------------------------|---------------------------| | | Beginning-Year Book Value | Depreciation Rate | Annual Depreciation | Accumulated Depreciation | Year-End Book Value | | Year 1 | | | | | | | Year 2 | | | | | | | Year 3 | | | | | | | Year 4 | | | | | | | Total | | | | | | This table is designed to calculate the depreciation and book value of the equipment over four years using the double-declining-balance method. Input values for each column to compute how the value of the asset decreases annually.
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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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