Required information Exercise 11-3 (Algo) Depreciation methods partial periods (LO 11-2] [The following information applies to the questions displayed below.] On October 1, 2021, the Allegheny Corporation purchased equipment for $148,000. The estimated service life of the equipment is 10 years and the estimated residual value is $5,000. The equipment is expected to produce 260.000 units during its life. Required: Calculate depreciation for 2021 and 2022 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service
Required information Exercise 11-3 (Algo) Depreciation methods partial periods (LO 11-2] [The following information applies to the questions displayed below.] On October 1, 2021, the Allegheny Corporation purchased equipment for $148,000. The estimated service life of the equipment is 10 years and the estimated residual value is $5,000. The equipment is expected to produce 260.000 units during its life. Required: Calculate depreciation for 2021 and 2022 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles
Section: Chapter Questions
Problem 8.5E: Change in Estimate Assume that Bloomer Company purchased a new machine on January 1, 2016, for...
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Required information
Exercise 11-3 (Algo) Depreciation methods partial periods (LO 11-2]
[The following information applies to the questions displayed below.]
On October 1, 2021, the Allegheny Corporation purchased equipment for $148,000. The estimated service life of the equipment is 10 years and the estimated residual value is $5,000. The equipment is expected to produce 260.000 units during its life.
Required:
Calculate depreciation for 2021 and 2022 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service
![Required information
Exercise 11-3 (Algo) Depreciation methods partial periods [LO11-2]
[The following information applies to the questions displayed below.]
On October 1, 2021, the Allegheny Corporation purchased equipment for $148,000. The estimated service life of the
equipment is 10 years and the estimated residual value is $5,000. The equipment is expected to produce 260,000 units
during its life.
Required:
Calculate depreciation for 2021 and 2022 using each of the following methods. Partial-year depreciation is calculated
based on the number of months the asset is in service.
Exercise 11-3 (Algo) Part 1
1. Straight-line.
Formula
Amounts
Year
2021
2022
Choose Numerator:
Beginning Book Value
Annual Depreciation
Straight-Line Depreciation
1
XI
1
X
X
Answer is not complete.
X
Choose Denominator:
Double the straight-line rate
Fraction of Year
X =
=
1/12 X =
Annual Depreciation
Annual Depreciation
Depreciation expense](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe313bcc6-6d96-4bea-a856-5c9788afe468%2F28988b29-8e02-42ec-8494-335de93b67f2%2F3cuv5xl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
Exercise 11-3 (Algo) Depreciation methods partial periods [LO11-2]
[The following information applies to the questions displayed below.]
On October 1, 2021, the Allegheny Corporation purchased equipment for $148,000. The estimated service life of the
equipment is 10 years and the estimated residual value is $5,000. The equipment is expected to produce 260,000 units
during its life.
Required:
Calculate depreciation for 2021 and 2022 using each of the following methods. Partial-year depreciation is calculated
based on the number of months the asset is in service.
Exercise 11-3 (Algo) Part 1
1. Straight-line.
Formula
Amounts
Year
2021
2022
Choose Numerator:
Beginning Book Value
Annual Depreciation
Straight-Line Depreciation
1
XI
1
X
X
Answer is not complete.
X
Choose Denominator:
Double the straight-line rate
Fraction of Year
X =
=
1/12 X =
Annual Depreciation
Annual Depreciation
Depreciation expense
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