Sayers Company purchased a building for $250,000 on January 2, 2019. The building has an expected residual value of $20,000 at the end of its expected life of 20 years. Required: 1 a. Prepare a schedule showing depreciation expense for 2019 and 2020 and the book value on December 31, 2019, and December 31, 2020, for straight-line method. If required, round your answers to the nearest dollar. SAYERS COMPANYDepreciation ScheduleStraight-line Beginning Book Value Depreciation Ending Book Value 2019 $fill in the blank 4e32eb09ffd4011_1 $fill in the blank 4e32eb09ffd4011_2 $fill in the blank 4e32eb09ffd4011_3 2020 $fill in the blank 4e32eb09ffd4011_4 $fill in the blank 4e32eb09ffd4011_5 $fill in the blank 4e32eb09ffd4011_6 b. Prepare a schedule showing depreciation expense for 2019 and 2020 and the book value on December 31, 2019, and December 31, 2020, for sum-of-the-years'-digits method. If required, round your answers to the nearest dollar. SAYERS COMPANYDepreciation ScheduleSum-of-the-years'-digits method Beginning Book Value Depreciation Ending Book Value 2019 $fill in the blank 94ed9e075fa306f_1 $fill in the blank 94ed9e075fa306f_2 $fill in the blank 94ed9e075fa306f_3 2020 $fill in the blank 94ed9e075fa306f_4 $fill in the blank 94ed9e075fa306f_5 $fill in the blank 94ed9e075fa306f_6 c. Prepare a schedule showing depreciation expense for 2019 and 2020 and the book value on December 31, 2019, and December 31, 2020, for double-declining-balance method. If required, round your answers to the nearest dollar. SAYERS COMPANYDepreciation ScheduleDouble-declining-balance Beginning Book Value Depreciation Ending Book Value 2019 $fill in the blank 574a69044f89fbe_1 $fill in the blank 574a69044f89fbe_2 $fill in the blank 574a69044f89fbe_3 2020 $fill in the blank 574a69044f89fbe_4 $fill in the blank 574a69044f89fbe_5 $fill in the blank 574a69044f89fbe_6
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.
Sayers Company purchased a building for $250,000 on January 2, 2019. The building has an expected residual value of $20,000 at the end of its expected life of 20 years.
Required:
1 a. Prepare a schedule showing
| Beginning Book Value | Depreciation | Ending Book Value | |
|---|---|---|---|
| 2019 | $fill in the blank 4e32eb09ffd4011_1 | $fill in the blank 4e32eb09ffd4011_2 | $fill in the blank 4e32eb09ffd4011_3 |
| 2020 | $fill in the blank 4e32eb09ffd4011_4 | $fill in the blank 4e32eb09ffd4011_5 | $fill in the blank 4e32eb09ffd4011_6 |
b. Prepare a schedule showing depreciation expense for 2019 and 2020 and the book value on December 31, 2019, and December 31, 2020, for sum-of-the-years'-digits method. If required, round your answers to the nearest dollar.
| Beginning Book Value | Depreciation | Ending Book Value | |
|---|---|---|---|
| 2019 | $fill in the blank 94ed9e075fa306f_1 | $fill in the blank 94ed9e075fa306f_2 | $fill in the blank 94ed9e075fa306f_3 |
| 2020 | $fill in the blank 94ed9e075fa306f_4 | $fill in the blank 94ed9e075fa306f_5 | $fill in the blank 94ed9e075fa306f_6 |
c. Prepare a schedule showing depreciation expense for 2019 and 2020 and the book value on December 31, 2019, and December 31, 2020, for double-declining-balance method. If required, round your answers to the nearest dollar.
| Beginning Book Value | Depreciation | Ending Book Value | |
|---|---|---|---|
| 2019 | $fill in the blank 574a69044f89fbe_1 | $fill in the blank 574a69044f89fbe_2 | $fill in the blank 574a69044f89fbe_3 |
| 2020 | $fill in the blank 574a69044f89fbe_4 | $fill in the blank 574a69044f89fbe_5 | $fill in the blank 574a69044f89fbe_6 |
d. Prepare a schedule showing depreciation expense for 2019 and 2020 and the book value on December 31, 2019, and December 31, 2020, for 150%-declining-balance method. If required, round your answers to the nearest dollar.
| Beginning Book Value | Depreciation | Ending Book Value | |
|---|---|---|---|
| 2019 | |||
| 2020 |
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