On January 2, 2015, Jatson Corporation acquired a new machine with an estimated
ID: 2450670 • Letter: O
Question
On January 2, 2015, Jatson Corporation acquired a new machine with an estimated useful life of five years. The cost of the equipment was $50,000 with an estimated residual value of $6,000.
a-1. Prepare a complete depreciation table under the straight-line method. Assume that a full year of depreciation was taken in 2015
a-2. Prepare a complete depreciation table under the 200 percent declining-balance method. Assume that a full year of depreciation was taken in 2015. (Round your final answers to the nearest whole number.)
a-3. Prepare a complete depreciation table under the 150 percent declining-balance with a switch to straight-line when it will maximize depreciation expense. Assume that a full year of depreciation was taken in 2015. (Round your final answers to the nearest whole number.)
Explanation / Answer
1. Straight Line :
2. Declining Method:
3.
The depricialtion is maximum in the first year. So, after applying straight line method:
Year Book Value Depreciation Accumulated Book Value Year Start Expense Depreciation Year End 2015 $70,000 $12,800.00 $12,800 $57,200 2016 $57,200 $12,800.00 $25,600 $44,400 2017 $44,400 $12,800.00 $38,400 $31,600 2018 $31,600 $12,800.00 $51,200 $18,800 2019 $18,800 $12,800.00 $64,000 $6,000Related Questions
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