13 at the estimated productive Ife of hining Cookie Company. Inc. n Murfreesboro
ID: 2526429 • Letter: 1
Question
13 at the estimated productive Ife of hining Cookie Company. Inc. n Murfreesboro, N bought a new i e ceam make at the beginning o he ear ? a cost $1 800. The estimated useful life was our ears and the i sidua vaue was S 280. Assume the machirie was 9,700 hours. Actual annual usage was 3,880 hours in year 1, 2,910 hours in year 2, 1,940 hours irn year 3, and 970 hours ir year 4 Required: 1. Complete a separate depreciation schedule for each of th anernate methods. Do not round intemediate calculations.)Explanation / Answer
Cost of Assets: $ 16800 Salvage value: $ 1280 Life: 4 years Depreciable amount: Cost-Salvage value = 16800-1280 = 15,520 Annual Depreciation under SLM: 15520/4= $ 3880 a. Staright line: Year Dep. Expense Accumulated Net Book Value Depreciation At acquisition 16800.00 Year1 3880 3880 12920.00 YEar2 3880 7760 9040.00 YEar3 3880 11640 5160.00 YEar4 3880 15520 1280.00 Unit of production: Depreciation per Hours: Depreciable amount/ Units =15520 /9700 hours = $ 1.60 per hour Depreciation: YEar1 (3880 *1.60) 6208 Year2 (2910*1.60) 4656 Year3 (1940*1.60) 3104 Year4 (970*1.60) 1552 Year Dep. Expense Accumulated Net Book Value Depreciation At acquisition 16800.00 Year1 6208 6208 10592.00 YEar2 4656 10864 5936.00 YEar3 3104 13968 2832.00 YEar4 1552 15520 1280.00 Double Decling method: Rate of DDM: 25*2:50% Year Dep. Expense Accumulated Net Book Value Depreciation At acquisition 16800.00 Year1 8400 8400 8400.00 YEar2 4200 12600 4200.00 YEar3 2100 14700 2100.00 YEar4 820 15520 1280.00 (Balanncing figure)
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