Partial-year depreciation Equipment acquired at a cost of $57,000 has an estimated residual value of $3,000 and an estimated useful ife of 10 years. It was placed in service on May 1 of the current fiscal year, which ends on December 31. This information has been collected in the Microsoft Excel Oniline file. Open the spreadshe perform the required analysis, and input your answers in the questions below. Open spreadsheet a. Determine the depreciation for the current fiscal year and for the following fiscal year by the straight ine method. Round your answers to the neares dollar. Depreciation Year 1 $ Year 2 $ b. Determine the depreciation for the current fiscal year and for the following fiscal year 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 $
Partial-year depreciation Equipment acquired at a cost of $57,000 has an estimated residual value of $3,000 and an estimated useful ife of 10 years. It was placed in service on May 1 of the current fiscal year, which ends on December 31. This information has been collected in the Microsoft Excel Oniline file. Open the spreadshe perform the required analysis, and input your answers in the questions below. Open spreadsheet a. Determine the depreciation for the current fiscal year and for the following fiscal year by the straight ine method. Round your answers to the neares dollar. Depreciation Year 1 $ Year 2 $ b. Determine the depreciation for the current fiscal year and for the following fiscal year 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 $
Chapter1: Financial Statements And Business Decisions
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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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Partial-year depreciation
DATA
$57.000
$3.000
10
Cost
5 Estimated residual value
Estimated useful life (in years)
Placed into service on
End on the fiscal year
May 1
December 31
Using formulas and cell references, perform the required analysis, and input your answers into the
Amounts column. Transfer the numeric results for the green entry cells (C13.C16) into the appropriate
felds in CNOW2 for grading.
Amounts
Formulas
13 a. Depreciation (Straight-line method), Year 1
Depreciation (Straight-line method), Year 2
15 b. Depreciation (D08 method), Year 1
Depreciation (DOB method), Year 2
14
16
A Data +
Transcribed Image Text:Chapter 09 Homework (Application)
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Partial-year depreciation
1. EX09.01
Equipment acquired at a cost of $57,000 has an estimated residual value of $3,000 and an estimated useful life of 10 years. It was placed in service on
2. EX.09.06
May 1 of the current fiscal year, which ends on December 31. 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.
3. EX09.07 ALGO
4. EX09 09 ALGO
5. EX 09.12 ALGO
Open spreadsheet
6. PR.09.05A BLANKSHEET
a. Determine the depreciation for the current fiscal year and for the following fiscal year by the straight-line method. Round your answers to the nearest
dollar.
7. PR09.06A BLANKSHEET
Depreciation
8. EX.09.11.EXCEL ALGO
Year 1
Year 2
b. Determine the depreciation for the current fiscal year and for the following fiscal year 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
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