Financial Accounting
3rd Edition
ISBN: 9780133791129
Author: Jane L. Reimers
Publisher: Pearson Higher Ed
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Chapter 3, Problem 30EA
1.
To determine
Calculate the amount of
2.
To determine
Calculate the book value of van for each year.
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Koffman's Warehouse purchased a forklift on January 1, 2017, for $6,000. The forklift is expected to last for five years and have a residual value of $600. Koffman's uses the double-declining-balance method for depreciation.
Required:
1. Calculate the depreciation expense, accumulated depreciation, and book value for each year of the forklift's life. If necessary, round any depreciation calculations to the nearest dollar.
Year
AnnualDepreciation
AccumulatedDepreciation
Book Value
2017
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$fill in the blank ea4059023fedfdb_2
$fill in the blank ea4059023fedfdb_3
2018
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fill in the blank ea4059023fedfdb_6
2019
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fill in the blank ea4059023fedfdb_8
fill in the blank ea4059023fedfdb_9
2020
fill in the blank ea4059023fedfdb_10
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Smart Enterprise bought a machine costing $40,000 on 1 January 2015. Themachine has a useful life of 4 years. The supplier which sold the machine hadagreed to take back the machine for $4,000 at the end of the useful life. Thecompany fiscal year-end is 31 December.Compute the depreciation expense, accumulated depreciation and net book valueof the machine for the years 2015, 2016, 2017 and 2018 using:(i) The straight-line method.(ii) The double-declining balance method.
Katie, your Accounting Manager, has asked you to calculate the depreciation for the new company car. The company purchased the new car on May 1, 2018.
The purchase price was $22,600 and had a useful life of 3 years.
The salvage or residual amount is 5% of the purchase price.
Round to the nearest whole dollar. Calculate the total depreciation expense in 2018, 2019, 2020, and 2021 using the straight-line method.
Chapter 3 Solutions
Financial Accounting
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