Chapter 9: Due Sunday eBook E Calculator E Print Item Depreciation by Two Methods; Sale of Fixed Asset New lithographic equipment, acquired at a cost of $812,500 on March 1 at the beginning of a fiscal year, has an estimated useful life of five years and an estimated residual value of $69,900. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. On the basis of the data presented to the manager, the double-declining-balance method was selected. In the first week of the fifth year, on March 4, the equipment was sold for $119,000. Required: 1. Determine the annual depreciation expense for each the estimated five years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by the following methods: a. Straight-line method Depreciation Accumulated Depreciation, Book Value, Year Expense End of Year End of Year %24 %24 $4 %$4 %$4 b. Double-declining-balance method Depreciation Accumulated Depreciation, Book Value, Year Expense End of Year End of Year Check My Work 1 more Check My Work uses remaining. Assignment Score: 0.0% Email Instructor Save and Exit Submit Assignment for Gradin
Chapter 9: Due Sunday eBook E Calculator E Print Item Depreciation by Two Methods; Sale of Fixed Asset New lithographic equipment, acquired at a cost of $812,500 on March 1 at the beginning of a fiscal year, has an estimated useful life of five years and an estimated residual value of $69,900. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. On the basis of the data presented to the manager, the double-declining-balance method was selected. In the first week of the fifth year, on March 4, the equipment was sold for $119,000. Required: 1. Determine the annual depreciation expense for each the estimated five years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by the following methods: a. Straight-line method Depreciation Accumulated Depreciation, Book Value, Year Expense End of Year End of Year %24 %24 $4 %$4 %$4 b. Double-declining-balance method Depreciation Accumulated Depreciation, Book Value, Year Expense End of Year End of Year Check My Work 1 more Check My Work uses remaining. Assignment Score: 0.0% Email Instructor Save and Exit Submit Assignment for Gradin
Chapter3: Setting Up A New Company
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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Q
Chapter 9: Due Sunday
еBook
Calculator
Print Item
Depreciation by Two Methods; Sale of Fixed Asset
New lithographic equipment, acquired at a cost of $812,500 on March 1 at the beginning of a fiscal year, has an estimated useful life of five years and an estimated residual value of $69,900. The manager
requested information regarding the effect of alternative methods on the amount of depreciation expense each year. On the basis of the data presented to the manager, the double-declining-balance method was
selected.
In the first week of the fifth year, on March 4, the equipment was sold for $119,000.
Required:
1. Determine the annual depreciation expense for each of the estimated five years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by
the following methods:
a. Straight-line method
Depreciation
Accumulated Depreciation,
Book Value,
Year
Expense
End of Year
End of Year
>
$4
$
2$
1
$
$4
$
$4
4
$
$
2$
$4
2$
b. Double-declining-balance method
Depreciation
Accumulated Depreciation,
Book Value,
Year
Expense
End of Year
End of Year
Check My Work 1 more Check My Work uses remaining.
Assignment Score: 0.0%
Email Instructor
Save and Exit
Submit Assignment for Grading
12,610
OCT
2973
26
étv A
Transcribed Image Text:Chrome
File
Edit
View
History
Bookmarks
Реople Tab
Window
Help
27%
Mon 3:13 PM
B Homepage - Fall 2020 BUSINE X
CengageNOWv2 | Online teach ×
b Depreciation by two methods;
X G how to screenshot on macbook x +
v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false
Q
Chapter 9: Due Sunday
еBook
Calculator
Print Item
Depreciation
Accumulated Depreciation,
Book Value,
Year
Expense
End of Year
End of Year
1
$
2
$
$
$
3
$
$
2$
4
$
$
5
$
2$
2. Journalize the entry to record the sale, assuming double-declining balance method is used. If an amount box does not require an entry, leave it blank.
>
3. Journalize the entry to record the sale in (2), assuming that the equipment was sold for $102,100 instead of $119,000. If an amount box does not require an entry, leave it blank.
Check My Work 1 more Check My Work uses remaining.
Assignment Score: 0.0%
Email Instructor
Save and Exit
Submit Assignment for Grading
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2973
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