AUBURN CAR WASH Cost of new car wash machines: $800, 000 Estimated residual value: $ 50,000Machine life in years :5 Machine life in hours: 10,000 Actual use per year: Year Hours used 1 2,000 2 1, 800 3 2,200 4 2,100 5 1,900 Use the information on the Given Data worksheet to prepare three depreciation schedules using the following methods: straight- line, double - declining balance, and activity - based. Auburn Car Wash Straight Line If you hover your mouse over a cell with a red flag you will see the comment Auburn Car Wash Double - Declining - Balance If you hover your mouse over a cell with a red flag you will see the comment Note: for year 5 you must make the year end book value equal to the Residual Value Therefore you will need to take the beginning book value less the Residual Value Auburn Car Wash Activity - Based When you have completed all three schedules answer the following question. What do you observe about the Book Value at the end of the 5th year for all three methods? Type answer here longrightarrow

AUBURN CAR WASH Cost of new car wash machines: $800, 000 Estimated residual value: $ 50,000Machine life in years :5 Machine life in hours: 10,000 Actual use per year: Year Hours used 1 2,000 2 1, 800 3 2,200 4 2,100 5 1,900 Use the information on the Given Data worksheet to prepare three depreciation schedules using the following methods: straight- line, double - declining balance, and activity - based. Auburn Car Wash Straight Line If you hover your mouse over a cell with a red flag you will see the comment Auburn Car Wash Double - Declining - Balance If you hover your mouse over a cell with a red flag you will see the comment Note: for year 5 you must make the year end book value equal to the Residual Value Therefore you will need to take the beginning book value less the Residual Value Auburn Car Wash Activity - Based When you have completed all three schedules answer the following question. What do you observe about the Book Value at the end of the 5th year for all three methods? Type answer here longrightarrow

Name: AUBURN CAR WASH Cost of new car wash machines: $800,000 Estimated res
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Description: AUBURN CAR WASH Cost of new car wash machines: $800,000 Estimated residual value: $50,000Machine life in years :5 Machine life in hours: 10,000 Actual use per year: Year Hoursused 1 2,000 2 1, 800 3 2,200 4 2, 100 5 1,900 Use the information on the

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets

Section19.5: Declining-balance Method Of Depreciation

Problem 1WT

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When depreciation is recorded each period, what account is debited? a. Depreciation Expense b. Cash c. Accumulated Depreciation d. The fixed asset account involved Use the following information for Multiple-Choice Questions 7-4 through 7-6: Cox Inc. acquired a machine for on January 1, 2019. The machine has a salvage value of $20,000 and a 5-year useful life. Cox expects the machine to run for 15,000 machine hours. The machine was actually used for 4,200 hours in 2019 and 3,450 hours in 2020.
To test your formulas, assume the machine purchased had an estimated useful life of three years (20,000, 30,000, and 50,000 hours, respectively). Enter the new information in the Data Section of the worksheet. Does your depreciation total 320,000 under all three methods? There are three common errors made by students completing this worksheet. Lets clear up two of them. One, an asset that has a three-year life should have no depreciation claimed in Year 4. This can be corrected using an =IF statement in Year 4. For example, the correct formula in cell C32 is =IF(B32D9,0,(D7D8)/D9) or =IF(B32D9, 0, SLN(D7, D8, D9)). You may wish to edit what you have already entered rather than retype it. Two, as mentioned in requirement 2, the double-declining-balance calculation needs to be modified in the last year of the assets life. Assuming you have already modified the formula for Year 4 (per instructions in step 2), alter the formula for Year 3 also. If you corrected any formulas, test their correctness by trying different estimated useful lives (between 3 and 8) in cell E9. Then reset the Data Section to the original values, save the revised file as DEPREC2, and reprint the worksheet to show the correct formulas. The third common error doesnt need to be corrected in this problem. The general form of the double-declining-balance formula needs to be modified to check the net book value of the asset each year to make sure it does not go below salvage value. =DDB does this automatically, but if you are writing your own formulas, this gets very complicated and is beyond the scope of the problem.
Depreciation by two methods A storage tank acquired at the beginning of the fiscal year at a cost of $82,800 has an estimated residual value of $12,000 and an estimated useful life of 10 years. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Determine the amount of annual depreciation by the straight-line method. Round your answer to the nearest dollar. ____________________ Determine the amount of depreciation for the first and second years computed by the double-declining-balance method. Do not round the double-declining balance rate. Round your answers to the nearest dollar. Depreciation Year 1 Year 2
Depreciation by two methods A storage tank acquired at the beginning of the fiscal year at a cost of $104,400 has an estimated residual value of $15,000 and an estimated useful life of 10 years. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. X Open spreadsheet a. Determine the amount of annual depreciation by the straight-line method. Round your answer to the nearest dollar.
AUBURN CAR WASH Cost of new car wash machines: $800,000 Estimated residual value: $50,000 Machine life in years:5 Machine life in hours: 10,000 Actual use per year: Year Hours used 1 2,000 2 1,800 3 2,200 4 2,100 5 1,900 Use the information on the Given Data worksheet to prepare three depreciation schedules using the following methods: straight-line, double - declining balance, and activity - based. Auburn Car Wash Straight Line If you hover your mouse over a cell with a red flag you will see the comment Auburn Car Wash Double - Declining - Balance If you hover your mouse over a cell with a red flag you will see the comment Note: for year 5 you must make the year end book value equal to the Residual Value Therefore you will need to take the beginning book value less the Residual Value Auburn Car Wash Activity - Based When you have completed all three schedules answer the following question. What do you observe about the Book Value at the end of the 5th year for all three methods? Type…
Depreciation by two methods A storage tank acquired at the beginning of the fiscal year at a cost of $104,400 has an estimated residual value of $15,000 and an estimated useful life of 10 years. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Xx Open spreadsheet a. Determine the amount of annual depreciation by the straight-line method. Round your answer to the nearest dollar. b. Determine the amount of depreciation for the first and second years computed by the double-declining-balance method. Do not round the double-declining balance rate. Round your answers to the nearest dollar. Year 1 Year 2 Depreciation
Calculate depreciation in the following case La Rosa del Monte has a moving truck that performs large removals in the Miami area and at the end of the year has a balance of $88,250 with a cumulative depreciation of $12,230. It also has a small truck that it uses in the Orlando area for $43,760 with a cumulative depreciation of $7,120. Determine what the depreciation is for each truck using the depreciation by units of activity method. Truck Cost Estimated residual value Estimated service lifetime Accumulated depreciation at the beginning of the year Miles used in the year Large truck $88,250 $17,000 230,000 millas $12,230 32,000 Small truck 43,760 6,500 280,000 millas 7,120 27,300
Create a single line depreciation schedule using the following information: Computer Equipment (original price): $3,000 Residual Value: $150 Useful Life: 5 years Depreciation percentage: 20%
Given the data, prepare a depreciation table (Depreciation Expense, Accumulated Depreciation, Carrying Amount) for the following methods: 1. Straight line 2. Service hours 3. Production method Also, identify the Gain or Loss for each year and every deprecation method if the machine is sold at: End of 1st Yr - 500,000 End of 2nd Yr - 360,000 End of 3rd Yr - 260,000 End of 4th Yr - 165,000 End of 5th Yr - 40,000
A utility vehicle purchased by Knox industries should last 110,000 miles . the accusation cost was 21,200 and the salvage value is 1,913. Using the units of production depreciation method given the annual usage information calculate the accumulated depreciation at the end of year to round your depreciation per unit to three decimal places run your answer to the nearest cent. year one 22,029. Your two 22,724. Year 3 23,420. year 4 23,188. Answer key A.3,976.70 B.4,098.50 C.7,831.78 D.13,368.23
Units-of-activity depreciation A tractor acquired at a cost of $400,000 has an estimated residual value of $122,800, has an estimated useful life of 36,000 hours, and was operated 4,670 hours during the year. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. X Open spreadsheet Determine the following. Round your answer for depreciation rate to two decimal places. a. The depreciable cost b. The depreciation rate c. The units-of-activity depreciation for the year per hour
Copy equipment was acquired at the beginning of the year at a cost of $38,600 that has an estimated residual value of $3,500 and an estimated useful life of 5 years. It is estimated that the machine will output an estimated 1,170,000 copies. This year, 268,000 copies were made. a. Determine the depreciable cost.$fill in the blank 1 b. Determine the depreciation rate. Round your answer to two decimal places.$fill in the blank 2 per copy c. Determine the units-of-output depreciation for the year.$fill in the blank 3