Seconds Fried Chicken bought equipment on January 2, 2024, for $30,000 The equipment was expected to remain in service for four years and to operate for 8,000 hours. At the end of the equipment's useful fe, Seconds estimates that es residual value will be 50.000 The equipment operated for 800 hours the first year, 2,400 hours the second year, 3,200 hours the third year, and 1,600 hours the fourth year Read the requirements Requirement 1. Prepare a schedule of depreciation expense, accumulated depreciation, and book value per year for the equipment under the three depreciation methods straight ine, units of production, and double dechining balance Show your computations Note Three deprecation schedules must be prepared Begin by preparing a depreciation schedule using the straight ine method Straight Line Depreciation Schedule Date 12.2004 5 12-31-2024 12.31-2025 12-31 2026 12-31-2027 Asset Cost 30,000 Depreciation for the Year Useful Life Depreciable Cost 1 24,000 24,000- 24,000 24,000 4 years 4 years 4 years 4 years Depreciation Expense S 6,000 6.000 6,000 6000 Accumulated Depreciation Book Value 1 30,000

Seconds Fried Chicken bought equipment on January 2, 2024, for $30,000 The equipment was expected to remain in service for four years and to operate for 8,000 hours. At the end of the equipment's useful fe, Seconds estimates that es residual value will be 50.000 The equipment operated for 800 hours the first year, 2,400 hours the second year, 3,200 hours the third year, and 1,600 hours the fourth year Read the requirements Requirement 1. Prepare a schedule of depreciation expense, accumulated depreciation, and book value per year for the equipment under the three depreciation methods straight ine, units of production, and double dechining balance Show your computations Note Three deprecation schedules must be prepared Begin by preparing a depreciation schedule using the straight ine method Straight Line Depreciation Schedule Date 12.2004 5 12-31-2024 12.31-2025 12-31 2026 12-31-2027 Asset Cost 30,000 Depreciation for the Year Useful Life Depreciable Cost 1 24,000 24,000- 24,000 24,000 4 years 4 years 4 years 4 years Depreciation Expense S 6,000 6.000 6,000 6000 Accumulated Depreciation Book Value 1 30,000

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 14P: Hunter Company purchased a light truck on January 2, 2019 for 18,000. The truck, which will be used...

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