Exercise 7-48Depreciation MethodsBerkshire Corporation purchased a copying machine for $8,700 on January 1, 2019. The machine's residual value was $425 and its expected life was 5 years or 2,000,000 copies. Actual usage was 480,000 copies in the first year and 400,000 in the second year.Required:1. Compute depreciation expense for 2019 and 2020 using the:a. Straight-line method.Depreciation expense $fill in the blank 1 per yearb. Double-declining-balance method. Depreciation Expense2019$fill in the blank 22020$fill in the blank 3c. Units-of-production method. (Do not round intermediate calculations.) Depreciation Expense2019$fill in the blank 42020$fill in the blank 52. For each depreciation method, what is the book value of the machine at the end of 2019? At the end of 2020? 20192020a.Straight-line method$fill in the blank 6$fill in the blank 7b.Double-declining-balance method$fill in the blank 8$fill in the blank 9c.Units-of-production method$fill in the blank 10$fill in the blank 11

Straight Line Method Depreciation Expense = Cost of Asset - Residual ValueExpected Useful Life…

Answered: xercise 7-48 Depreciation Methods…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Exercise 7-48
Depreciation Methods

Berkshire Corporation purchased a copying machine for $8,700 on January 1, 2019. The machine's residual value was $425 and its expected life was 5 years or 2,000,000 copies. Actual usage was 480,000 copies in the first year and 400,000 in the second year.

Required:

1. Compute depreciation expense for 2019 and 2020 using the:

a. Straight-line method.

Depreciation expense $fill in the blank 1 per year

b. Double-declining-balance method.

	Depreciation Expense
2019	$fill in the blank 2
2020	$fill in the blank 3

c. Units-of-production method. (Do not round intermediate calculations.)

	Depreciation Expense
2019	$fill in the blank 4
2020	$fill in the blank 5

2. For each depreciation method, what is the book value of the machine at the end of 2019? At the end of 2020?

		2019	2020
a.	Straight-line method	$fill in the blank 6	$fill in the blank 7
b.	Double-declining-balance method	$fill in the blank 8	$fill in the blank 9
c.	Units-of-production method	$fill in the blank 10	$fill in the blank 11

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