College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN: 9781337794756
Author: HEINTZ, James A.
Publisher: Cengage Learning,
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Chapter 5A, Problem 2SEB
To determine

Prepare a depreciation schedule showing the depreciation expense, accumulated depreciation, and book value for each year under the sum-of-the-years’- digits method.

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Prepare a schedule of depreciation expense, accumulated depreciation, and book value per year for the equipment under the three depreciationmethods: straight-line,units-of-production, and double-declining-balance. Show your computations. Note: Three depreciation schedules must be prepared. Begin by preparing a depreciation schedule using thestraight-line method. Straight-Line Depreciation Schedule         Depreciation for the Year       Asset Depreciable   Useful   Depreciation Accumulated Book Date Cost Cost   Life   Expense Depreciation Value 1-2-2024 $30,000             $30,000 12-31-2024   $24,000 ÷ 4 years = $6,000 $6,000 24,000 12-31-2025   24,000 ÷ 4 years = 6,000 12,000 18,000 12-31-2026   24,000 ÷ 4 years = 6,000 18,000 12,000 12-31-2027   24,000 ÷ 4 years = 6,000 24,000 6,000 Before calculating the units-of-production depreciationschedule, calculate the…
Determine the machine's second-year depreciation and year end book value under the straight-line method. Straight-Line Depreciation Choose Numerator: / Choose Denominator: = Annual Depreciation Expense = Depreciation expense Year 2 Depreciation nces Year end book value (Year 2) =
Obj. 2 PR 9-2A Comparing three depreciation methods Dexter Industries purchased packaging equipment on January 8 for $72,000. The equipment was expected to have a useful life of three years, or 18,000 operating hours, and a residual value of $4,500. The equipment was used for 7,600 hours during Year 1, 6,000 hours in Year 2, and 4,400 hours in Year 3. Instructions 1. Determine the amount of depreciation expense for the three years ending December 31, by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining- balance method. Also determine the total depreciation expense for the three years by each (Continued)
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