Please do not give solution in image format thanku (a)Prepare separate depreciation schedules for the life of the equipment using: (Round depreciation per unit to 2 decimal places, e.g.5.28 and final answers to O decimal places, e.g. 5,275.)Straight-line method:Year2021 $2022202320242025Double-diminishing-balance method:Year2021 $20222023202420254YearUnits-of-production method:202120222023DepreciableAmount20242025OpeningCarryingAmountUnits-of-ProductioneTextbook and Media$$$DepreciationExpenseDepreciationExpenseDepreciationExpense$$AccumulatedDepreciationAccumulatedDepreciationAccumulatedDepreciation[$$$CarryingAmountCarryingAmountCarryingAmount Sheridan Company purchased equipment on March 31, 2021, at a cost of $280,000. Management is considering the merits of usingthe diminishing-balance or units-of-production method of depreciation instead of the straight-line method, which it currently usesfor other equipment. The new equipment has an estimated residual value of $8,000 and an estimated useful life of either four yearsor 80,000 units. Demand for the products produced by the equipment is sporadic so the equipment will be used more in some yearsthan in others. Assume the equipment produces the following number of units each year: 14,400 units in 2021; 20,600 units in2022; 20,000 units in 2023; 20,000 units in 2024; and 5,000 units in 2025. Sheridan has a December 31 year end.

Depreciation expense:— It is the allocation of depreciable cost of an asset over the estimated…

Sheridan Company purchased equipment on March 31, 2021, at a cost of $280,000. Management is considering the merits of using the diminishing-balance or units-of-production method of depreciation instead of the straight-line method, which it currently uses for other equipment. The new equipment has an estimated residual value of $8,000 and an estimated useful life of either four years or 80,000 units. Demand for the products produced by the equipment is sporadic so the equipment will be used more in some years than in others. Assume the equipment produces the following number of units each year: 14,400 units in 2021; 20,600 units in 2022; 20,000 units in 2023; 20,000 units in 2024; and 5,000 units in 2025. Sheridan has a December 31 year end.

Sheridan Company purchased equipment on March 31, 2021, at a cost of $280,000. Management is considering the merits of using the diminishing-balance or units-of-production method of depreciation instead of the straight-line method, which it currently uses for other equipment. The new equipment has an estimated residual value of $8,000 and an estimated useful life of either four years or 80,000 units. Demand for the products produced by the equipment is sporadic so the equipment will be used more in some years than in others. Assume the equipment produces the following number of units each year: 14,400 units in 2021; 20,600 units in 2022; 20,000 units in 2023; 20,000 units in 2024; and 5,000 units in 2025. Sheridan has a December 31 year end.

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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Sheridan Company purchased equipment on March 31, 2021, at a cost of $216,000. Management is considering the merits of using the diminishing-balance or units-of-production method of depreciation instead of the straight-line method, which it currently uses for other equipment. The new equipment has an estimated residual value of $8,000 and an estimated useful life of either four years or 80,000 units. Demand for the products produced by the equipment is sporadic so the equipment will be used more in some years than in others. Assume the equipment produces the following number of units each year: 15,000 units in 2021; 20,600 units in 2022; 19,400 units in 2023; 20,000 units in 2024; and 5,000 units in 2025. Sheridan has a December 31 year end. (a) Your answer is partially correct. Prepare separate depreciation schedules for the life of the equipment using: (Round depreciation per unit to 2 decimal places, e.g. 5.28 and final answers to 0 decimal places, e.g. 5,275.) Straight-line method:…
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