P 11-3 Depreciation methods; partial periods Chapters 10 and 11 LO11-2[This problem is a continuation of P 10-3 inMain contentd:Chapter 10 focusing on depreciation.]For each asset classification, prepare a schedule showing depreciation for the year ended December 31,2024, using the following depreciation methods and useful lives:Land improvements-Straight line; 15 yearsBuilding-150% declining balance; 20 yearsEquipment-Straight line; 10 yearsAutomobiles-Units-of-production; $0.50 per mileDepreciation is computed to the nearest month and whole dollar amount, and no residual values areused. Automobiles were driven 38,000 miles in 2024.

Answered: P 11-3 Depreciation methods; partial…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Computing Partial Period Depreciation under Multiple Depreciation Methods To demonstrate the computations involved in several methods of depreciating a fixed asset, the following information is provided. Cost and residual value Estimated service life Acquisition cost $62,500 Years 5 Residual value $2,500 Service hours 50,000 Productive output (units) 120,000 d. Sum-of-the-years’-digits method: Compute the depreciation amount for each year. 2020 2021 2022 2023 2024 2025 Answer Answer Answer Answer Answer Answer e. Double-declining-balance method: Compute the depreciation amount for each year. 2020 2021 2022 2023 2024 2025 Answer Answer Answer Answer Answer Answer Required Compute the annual depreciation using each of the following methods assuming that the asset was purchased on August 1, 2020.
Computing Depreciation Using Various Depreciation Methods To demonstrate the computations involved in several methods of depreciating a fixed asset, the following data are used for equipment purchased on January 1, 2020. Cost and residual value Estimated service life: Acquisition cost $26,250 Years 5 Residual value $1,050 Service hours 21,000 Productive output (units) 50,400 e. Double-declining-balance method: Compute the depreciation amount for each year. 2020 2021 2022 2023 2024 Answer Answer Answer Answer Answer
Note: Double Declining Balance = 200% Declining Balance A. How much is the depreciation for year 3? Select one: o a. P158,203.13 o b. P150,000 o c. P210,937.50 o d. P187,500 В. How much is the total depreciation as of year three using DDB method? C. What is the equipment's book value at the end of year three?
onsider the following data on an asset:Cost of the asset, I $235,000Useful life, N 5 yearsSalvage value, S $ 60,000Compute the annual depreciation allowances and theresulting book values, using(a) The straight-line depreciation method.(b) The double-declining-balance method
Disposal of Fixed Asset Equipment acquired on January 8, 20Y1, at a cost of $607,500, has an estimated useful life of 17 years and an estimated residual value of $72,900. a. What was the annual amount of depreciation for the years 20Y1, 20Y2, and 20Y3, using the straight-line method of depreciation? Round annual depreciation to the nearest dollar and use this amount in your foll Depreciation expense 20Υ1 31,447 20Y2 31,447 20Υ3 31,447 b. What was the book value of the equipment on January 1, 20Y4? For decreases in accounts or outflows of cash, enter your answers as negative numbers. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box bla c. Assuming that the equipment was sold on January 7, 20Y4, for $151,875, illustrate the effects on the accounts and financial statements of the sale. Balance Sheet Statement of Income Assets Liabilities + Stockholders' Equity Cash Flows Statement Cash v + Equipment Accumulated…
A18-5 Depreciation Period: Page 1305 Consider the following independent cases: Case 1 Case 2 Case 3 6 years 5 years 4 years Lease term, including renewals 10 years 7 years 5 years Economic life 8 years 6 years 3 years Useful life No Yes Yes Title transfer expected S10,000 $5,000 $2,000 Residual value Each of the above cases uses straight-line depreciation. Required: For each of the above cases, determine the depreciation term and the residual value used in computing the depreciable amount (original cost less residual value).
9.9 Consider the following data on an asset: Cost of the asset, / Useful life, N Salvage value, S $123,000 7 years $13,000 Compute the annual depreciation allowances and the resulting book values, initially using the DDB and then switching to SL.
Exercise 11-3 (Aigo) Depreciation methods; partial periods [LUT1-2] The following information applies to the questions displayed below.] On October 1, 2024, the Allegheny Corporation purchased equipment for $233,000. The estimated service life of the equipment is 10 years and the estimated residual value is $2,000. The equipment is expected to produce 420,000 units during its life. Required: Calculate depreciation for 2024 and 2025 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service. Exercise 11-3 (Algo) Part 2 2. Double-declining-balance. Depreciation Expense = $ 11,650 Formula Beginning Book Value Double-Declining-Balance Method xDouble the Straight-line Rate X Fraction of Year = Amount for 2024 $ 233,000 x 20 % x 3/12 Amount for 2025 X 20 % * 12/12 =
Revision of Depreciation Equipment with a cost of $748,000 has an estimated residual value of $68,000, has an estimated useful life of 25 years, and is depreciated by the straight-line method. a. Determine the amount of the annual depreciation.$fill in the blank 1 b. Determine the book value at the end of the 11 full years of use.$fill in the blank 2 c. Assuming that at the start of the year 12 the remaining life is estimated to be 17 years and the residual value is estimated to be $71,400, determine the depreciation expense for each of the remaining 17 years.
1. BE.09.04 Revision of Depreciation Equipment with a cost of $240,000 has an estimated residual value of $18,600, has an estimated useful life of 12 years, and is depreclated by the straight-Iline method. a. Determine the amount of the annual depreciation. 24 b. Determine the book value at the end of the tenth year of use. $4 C. Assuming that at the start of the eleventh year the remaining life is estimated to be four years and the residual value is estimated to be $4,800, determine the depreciation expense for each of the remaining four years. $4
Disposal of Fixed Asset Equipment acquired on January 6 at a cost of $455,400 has an estimated useful life of 10 years and an estimated residual value of $59,400. a. What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation? Year Depreciation Expense Year 1 $fill in the blank f1b9f00b5045034_1 Year 2 $fill in the blank f1b9f00b5045034_2 Year 3 $fill in the blank f1b9f00b5045034_3 b. What was the book value of the equipment on January 1 of Year 4?$fill in the blank f1b9f00b5045034_4 c. Assuming that the equipment was sold on January 3 of Year 4 for $319,800, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Jan. 3 fill in the blank ba2b40ff4fcafe9_2 fill in the blank ba2b40ff4fcafe9_3 fill in the blank ba2b40ff4fcafe9_5 fill in the blank ba2b40ff4fcafe9_6 fill in the blank ba2b40ff4fcafe9_8 fill in the blank ba2b40ff4fcafe9_9 fill…
Equipment acquired on January 2, Year 1, at a cost of $525,000 has an estimated useful life of eight years and an estimated residual value of $45,000. Required: 1. What is the annual amount of depreciation for the first three years, assuming the straight-line method of depreciation is used? Depreciation Expense Year 1 $fill in the blank 3b987ff9206ffcf_1 Year 2 $fill in the blank 3b987ff9206ffcf_2 Year 3 $fill in the blank 3b987ff9206ffcf_3 2. What is the book value of the equipment on January 1, Year 4?$fill in the blank 3b987ff9206ffcf_4 3. Assuming that the equipment is sold on January 2, Year 4, for $326,000, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Cash Cash Accumulated Depreciation-Equipment Accumulated Depreciation-Equipment Loss on Sale of Equipment Loss on Sale of Equipment Equipment Equipment 4. Assuming that the equipment is sold on…

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