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Kam Company purchased a machine on January 2, 2019, for $20,000. The machine had an expected life of 8 years and a residual value of $300. The double-declining-balance method of depreciation is used. Required: (If required, round to the nearest dollar.) Compute the depreciation expense for each year of the asset's life and book value at the end of each year.   Depreciation Expense Book value 2019     2020     2021     2022     2023     2024     2025     2026     Assuming that the company has a policy of always changing to the straight-line method at the midpoint of the asset's life, compute the depreciation expense for each year of the asset's life. Compute the depreciation using the double-declining-balance through year four, then switch to the straight-line method. 2019: $   2020: $   2021: $   2022: $   2023: $   2024: $   2025: $   2026: $   Assuming that the company always changes to the straight-line method at the beginning of the year when the annual straight-line amount exceeds the double-declining-balance amount, compute the depreciation expense for each year of the asset's life. 2019: $   2020: $   2021: $   2022: $   2023: $   2024: $   2025: $   2026: $

Kam Company purchased a machine on January 2, 2019, for $20,000. The machine had an expected life of 8 years and a residual value of $300. The double-declining-balance method of depreciation is used. Required: (If required, round to the nearest dollar.) Compute the depreciation expense for each year of the asset's life and book value at the end of each year.   Depreciation Expense Book value 2019     2020     2021     2022     2023     2024     2025     2026     Assuming that the company has a policy of always changing to the straight-line method at the midpoint of the asset's life, compute the depreciation expense for each year of the asset's life. Compute the depreciation using the double-declining-balance through year four, then switch to the straight-line method. 2019: $   2020: $   2021: $   2022: $   2023: $   2024: $   2025: $   2026: $   Assuming that the company always changes to the straight-line method at the beginning of the year when the annual straight-line amount exceeds the double-declining-balance amount, compute the depreciation expense for each year of the asset's life. 2019: $   2020: $   2021: $   2022: $   2023: $   2024: $   2025: $   2026: $

Intermediate Accounting: Reporting And Analysis
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 8P: Kam Company purchased a machine on January 2, 2019, for 20,000. The machine had an expected life of...
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Kam Company purchased a machine on January 2, 2019, for $20,000. The machine had an expected life of 8 years and a residual value of $300. The double-declining-balance method of depreciation is used.

Required:

(If required, round to the nearest dollar.)

  1. Compute the depreciation expense for each year of the asset's life and book value at the end of each year.
      Depreciation
    Expense    		 Book
    value
    2019    
    2020    
    2021    
    2022    
    2023    
    2024    
    2025    
    2026    
  2. Assuming that the company has a policy of always changing to the straight-line method at the midpoint of the asset's life, compute the depreciation expense for each year of the asset's life. Compute the depreciation using the double-declining-balance through year four, then switch to the straight-line method.

    2019: $  
    2020: $  
    2021: $  
    2022: $  
    2023: $  
    2024: $  
    2025: $  
    2026: $  

  3. Assuming that the company always changes to the straight-line method at the beginning of the year when the annual straight-line amount exceeds the double-declining-balance amount, compute the depreciation expense for each year of the asset's life.

    2019: $  
    2020: $  
    2021: $  
    2022: $  
    2023: $  
    2024: $  
    2025: $  
    2026: $  
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