NmTab Search RegistrationDetailsIntex, MCh 11 Test coeztomheducation.comhmtpx 12

Question

NmTab Search RegistrationDetailsIntex, MCh 11 Test coeztomheducation.comhmtpx 12. 10.00 points Brief Exercise 11-3 Depreciation methods; partial years [LO11-2] March 31, 2016, Canseco Plumbing Fixtures purchased equipment for $66,000 Residuial value at the end of an estimated four-year service ife is expected to be $6,000 The c operate for 15,000 hours ompany expects the machine to a. Calculate depreciation expense for 2016 and 2017 using straight line method Straight-Line Depreciation Choose Numerator:Choose Denominator oAnnual Depreciation Annual Depreciation Year Annual Depreciationx 2016 2017 Fraction of Year a b. Calculate depreciation experso for 2016 and 2017 using sum-of the years digts method Rate per xFraction of YearN 4/1/2016 trough 12/31/2016 1/1/2017 theough 3331/2017 4/1/2017 through 12/31/2017 TOSHIBA esc 2 4 tab

Explanation / Answer

1)                                              Straight line Depreciation Choose Numerator                   / choose Denominator = Annual Depreciation (cost - salvage value) / estimated useful life = Annual Depreciation 60,000 / 4 = 15,000 year annual depreciation * Fraction of year = Depreciation expense 2016 15,000 * 9/12 = 11250 2017 15,000 * 12/12 = 15000 2)                                                     Sum of the years digits depreciation Depreciable * rate * Fraction = Depreciat base per yr of year expense 4/1/2016 through 12/31/2016 60,000 * 4/10 * 9/12 = 18000 total depreciation expense -2016 1/1/2017 through 3/31/2017 60,000 * 4/10 * 3/12 = 6000 4/1/2017 through 12/31/2017 60,000 * 3/10 * 9/12 = 13500 3) Beg of Dep fraction Dep Accum Book Annual period period BV rate of yr expense dep value 2016 66,000 50% 9/12 24750 24,750 41,250 2017 41,250 50% 12/12 20625 45,375 20,625

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