5. Captain America\'s new shield was purchased on January 1, 2018 for $95,000. I

Question

5. Captain America's new shield was purchased on January 1, 2018 for $95,000. Its estimated useful life is 5 years or taking 180,000 bullets. Estimated residual value is $5,000. The actual numbers of bullets taken are as follows Year 2018 2019 2020 2021 2022 # of Bullets Taken 40,000 50,000 40,000 30,000 20,000 Please fill out the below depreciation schedules. Straight-Line (C-RVIN Sum-of-the-Years' Digits [(C-RV).R?N (N +1 )/2 Exp. Acc. Dep. BV Yr Exp. Acc. Dep. BV 2 3 4 Double-Declining Activity [(C-RV)/U]Units Used Yr Exp. Acc. Dep.BV Exp. Acc. Dep. BV 2

Explanation / Answer

Depreciation Schedule (Straight Line method) Year depreciation Expense ($) Accumulated Depreciation ($) Asset Book value ($) 2018 18000 18000 77000 2019 18000 36000 59000 2020 18000 54000 41000 2021 18000 72000 23000 2022 18000 90000 5000 Depreciation under straight line method Cost of asset-Relizable value/ life of asset 95000-5000/5 18000 Depreciation Schedule (Some of the year's digit method) Year depreciation Expense ($) Accumulated Depreciation ($) Asset Book value ($) 2018 31666.67 31666.67 63333.33 2019 25333.33 57000.00 38000.00 2020 19000.00 76000.00 19000.00 2021 12666.67 88666.67 6333.33 2022 6333.33 95000.00 0.00 Depreciation (Cost-Reliazable value)*Remaining Life/useful life (useful life+1)/2 Statement showing calculation of depreciation Year Depreciation 2018 (95000-5000)*5/5(5+1)/2 31666.67 2019 (95000-5000)*4/5(5+1)/2 25333.33 2020 (95000-5000)*3/5(5+1)/2 19000.00 2021 (95000-5000)*2/5(5+1)/2 12666.67 2022 (95000-5000)*1/5(5+1)/2 6333.33 Depreciation Schedule (Double declining method) Year depreciation Expense ($) Accumulated Depreciation ($) Asset Book value ($) 2018 38000 38000 57000 2019 22800 60800 34200 2020 13680 74480 20520 2021 8208 82688 12312 2022 4925 87613 7387 Depreciation under Double Declining 2/estimated useful life* book value at the beginning of the year 2/5*95000 38000 * calculated for other years using the same formula Depreciation Schedule (Activity method) Year depreciation Expense ($) Accumulated Depreciation ($) Asset Book value ($) 2018 20000 20000 75000 2019 25000 45000 50000 2020 20000 65000 30000 2021 15000 80000 15000 2022 10000 90000 5000 Depreciation per unit Cost of asset-salvage value/ total units of production 95000-5000/180000 0.5 Depreciation per year Depreciation per unit * no of units in the year Year depreciation Expense ($) 2018 40000*.50 20000 2019 50000*.50 25000 2020 40000*.50 20000 2021 30000*.50 15000 2022 20000*.50 10000

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