9th Edition

ISBN: 9781260216141

Author: SPICELAND

Publisher: MCG CUSTOM

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Textbook Question

Chapter 11, Problem 11.6E

Depreciation methods; partial periods

• LO11–2

On April 30, 2018, Quality Appliances purchased equipment for $260,000. The estimated service life of the equipment is six years and the estimated residual value is $20,000. Quality’s fiscal year ends on December 31.

Required:

Calculate depreciation for 2018 and 2019 using each of the three methods listed. Quality calculates partial year depreciation based on the number of months the asset is in service. Round all computations to the nearest dollar.

1. Straight-line

2. Sum-of-the-years’-digits

3. Double-declining balance

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Chapter 11, Problem 11.5E

Chapter 11, Problem 11.7E

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Chapter 11 Solutions

INTERMEDIATE ACCOUNTING(LL)-W/CONNECT

Ch. 11 - Prob. 11.1Q Ch. 11 - Depreciation is a process of cost allocation, not...Ch. 11 - Identify and define the three characteristics of...Ch. 11 - Discuss the factors that influence the estimation...Ch. 11 - What is meant by depreciable base? How is it...Ch. 11 - Prob. 11.6Q Ch. 11 - Prob. 11.7Q Ch. 11 - Why are time-based depreciation methods used more...Ch. 11 - Prob. 11.9Q Ch. 11 - Prob. 11.10Q

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Solution Summary: The author explains that depreciation is a method of distributing the cost of fixed assets over their estimated useful life.

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