Horngren's Accounting, The Financial Chapters (12th Edition)

12th Edition

ISBN: 9780134486789

Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura

Publisher: PEARSON

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Textbook Question

Chapter 10, Problem E10.20E

Computing depreciation−three methods

Learning Objective 2
1. Double-declining-balance, 12/31/19, Exp. $8,250

Crispy Fried Chicken bought equipment on January 2, 2018, for $33,000. The equipment was expected to remain in service for four years and to operate for 6,750 hours. At the end of the equipment’s useful life, Crispy’s estimates that its residual value will be $6,000. The equipment operated for 675 hours the first year, 2,025 hours the second year, 2,700 hours the third year, and 1,350 hours the fourth year.

Requirements

Prepare a schedule of depreciation expense, accumulated depreciation, ad book value per year for the equipment under the three depreciation methods: straight-line, units-of-production, and double-declining-balance. Show your computations. Note: Three depreciation schedules must be prepared.
Which method tracks the wear and tear on the equipment most closely?

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Chapter 10, Problem E10.19E

Chapter 10, Problem E10.21E

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E9-20 Computing depreciation-three methods Learning Objective 2 1. Double-declining-balance, 12/31/19, Exp. $8,250 Crispy Fried Chicken bought equipment on January 2, 2018, for $33,000. The equipment was expected to remain in service for four years and to operate for 6,750 hours. At the end of the equipment's useful life, Crispy's estimates that its residual value will be $6,000. The equipment operated for 675 hours the first year, 2,025 hours the second year, 2,700 hours the third year, and 1,350 hours the fourth year. Requirements 1. Prepare a schedule of depreciation expense, accumulated depreciation, and book value per year for the equipment under the three depreciation methods: straight-line, units-of-production, and double-declining-balance. Show your computations. Note: Three depreciation schedules must be prepared. 2. Which method tracks the wear and tear on the equipment most closely?

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Chapter 10 Solutions

Horngren's Accounting, The Financial Chapters (12th Edition)

Ch. 10 - Prob. 1QC Ch. 10 - Prob. 2QC Ch. 10 - Which method almost always produces the most...Ch. 10 - A Celty Airline jet costs $28,000,000 and expected...Ch. 10 - Prob. 5QC Ch. 10 - Prob. 6QC Ch. 10 - Prob. 7QC Ch. 10 - Prob. 8QC Ch. 10 - Prob. 9QC Ch. 10 - Prob. 10AQC

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