Homework: Week 6 - Chapter 09 exercises Save Score: 0 of 1 pt 6 of 9 (3 complete
ID: 2430495 • Letter: H
Question
Homework: Week 6 - Chapter 09 exercises Save Score: 0 of 1 pt 6 of 9 (3 complete) HW Score: 29.21%, 2.63 of 9 pts E10-20 (similar to) -Question Help was expected to remain in service for four years and to perform 11,000 ty jobs. At the end of the equipments usetu ife Granny's estimates that its residual value ill be $6,000. The equipment performed 1,100 lobs the first year, 3,300 the second year, 4,400 the third year, and 2,200 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. Show your computations. Note: Three depreciation schedules must be prepared 2. Which method tracks the wear and tear on the equipment most closely? Requirement 1. Prepare a schedule of depreciation expense, accumulated deprecation, and book vaiue per yearfor the equipment under the hree deprecation methods. Show your computations. Note: Three depreciation schedules must be prepared Begin by preparing a depreciation schedule using the straight-line method Straight-Line Depreciation Schedule Depreciation for the Year Asset Depreciable Depreciation Depreciation Accumulated Book Cost Cost Rate Expense DepreciationValue Date -2-2016 12-31-2016 12-31-2017 12-31-2018 12-31-2019Explanation / Answer
(1) Depreciation under straight line method = (Cost - Residual Value)/Useful Life
= ($39,000 - $6,000)/4 yrs = $8,250 per year
Straight Line Depreciation Schedule (Amounts in $)
Depreciation for the year Date Asset Cost Depreciable Cost (A) Depreciation Rate (B) Depreciation Expense (A/B) Accumulated Depreciation Book Value 1-2-2016 39,000 39,000 12-31-2016 33,000 4 8,250 8,250 30,750 12-31-2017 33,000 4 8,250 16,500 22,500 12-31-2018 33,000 4 8,250 24,750 14,250 12-31-2019 33,000 4 8,250 33,000 6,000Related Questions
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