3.2 Roberts & Sons Company purchased a machine that cost R50, 000 and will last 5 years. A salvage value was not assigned to the asset. Determine the annual depreciation expense using the declining balance method and ending book value calculations are optional. Year 1 2 3 4 5 Beginning book value 50, 000 30, 000 18,000 10, 800 5, 680 Depreciation rate Depreciation expense 40% 40% 40% 40% 40% Ending book value

3.2 Roberts & Sons Company purchased a machine that cost R50, 000 and will last 5 years. A salvage value was not assigned to the asset. Determine the annual depreciation expense using the declining balance method and ending book value calculations are optional. Year 1 2 3 4 5 Beginning book value 50, 000 30, 000 18,000 10, 800 5, 680 Depreciation rate Depreciation expense 40% 40% 40% 40% 40% Ending book value

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 3RE: Albany Corporation purchased equipment at the beginning of Year 1 for 75,000. The asset does not...

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Albany Corporation purchased equipment at the beginning of Year 1 for 75,000. The asset does not have a residual value and is estimated to be in service for 8 years. Calculate the depreciation expense for Years 1 and 2 using the double-declining-balance method. Round to the nearest dollar.
Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?
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Change in Estimate Assume that Bloomer Company purchased a new machine on January 1, 2016, for $80,000. The machine has an estimated useful life of nine years and a residual value of $8,000. Bloomer has chosen to use the straight-line method of depreciation. On January 1, 2018, Bloomer discovered that the machine would not be useful beyond December 31, 2021, and estimated its value at that time to be $2,000. Required Calculate the depreciation expense, accumulated depreciation, and book value of the asset for each year 2016 to 2021. Was the depreciation recorded wrong in 2016 and 2017? If so, why was it not corrected?
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