Exercise 11-7 Coronado Industries presents you with the following information. C
ID: 2524983 • Letter: E
Question
Exercise 11-7
Coronado Industries presents you with the following information.
Complete the table for the year ended December 31, 2019. The company depreciates all assets using the half-year convention. (Round answers to 0 decimal places, e.g. 45,892.)
$13,920
Description Date Purchased Cost Salvage Value Life in Years Depreciation Method Accumulated Depreciation to 12/31/18 Depreciation for 2019 Machine A 2/12/17 $123,975$13,920
10 (A)_____ $29,015 (B)_______ Machine B 8/15/16 (C)______ 18,270 5 SL 25,230 (D)______ MAchine C 7/21/15 65,598 23,500 8 DDB (E)________ (F)_______ Machine D (G)_______ 190,530 60,030 5 SYD 60,900 (H)______Explanation / Answer
Machine A) Cost $123975 salvage Value $13920
Let method be SYD: 10(10+1)/2 = 55
Depreciation for 2017 = 123975-13920 = 110055/55*10/2= 10005
Depreciation for 2018 = 10005 + 110055*9/55/2= 10005 + 9004.5 = 29014.5 or 29015
hence the method is SYD.
Depreciation for 2019 = 9004.5 + 110055*8/55/2 = 9004 + 8004 = 17008
Machine B) Depreciatio as per SLM
Accumulated Depreciation includes Dep for year 2016 (half)+ 2017 +2018
Accumulated Dep = 25230
Depreciation per year = 25230/2.5 = 10092
Cost = 10092*5years + 18270 = 68730
Depreciation for 2019 = 10092
Machine C) Depreciatin as per DDB :
Rate = (65598-23500)/8 = 5262.25/(65598-23500) = 5262.25/42098 = 0.125 or 12.5%
Rate under DDB = 12.5 * 2 = 25%
Depreciation for 2015 = 65598*25%/2 = 8199.75
Depreciation for 2016 = (65598-8199.75) = 57398.25*25% = 14349.56
Depreciation for 2017 = 57398.25-14349.56 = 43048.69*25% = 10762.17
Depreciation for 2018 = 43048.69-10762.17 = 32286.52*25% = 8071.63
Accumulated Depreciation = 8199.75 + 14349.56+10762.17+8071.63 = 41383.11 or 41383
Depreciation for 2019 = 32286.52 - 8071.63 = 24214.89*25% = 24214.89
Machine D). Accumulated Depreciation = 60900
SYD = 5(5+1)/2 = 15
Depreciation for 1 year = 190530-60030 = 130500/15*5/2 =21750
Deprecation for 2 year= 21750 + 130500/15*4/2 = 17400
Total Depreciation = 21750+21750+17400 = 60900
It means machine is purchased in 2017 after half year.
Depreciaiton for 2019 = 17400 + 130500/15*3/2 = 13050
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.