1)
Introduction:
The depreciation expense each year based on a Straight line.
2)
Introduction: Depreciation links the cost of using a tangible item to the benefit received throughout its useful life. The accumulated depreciation account contains the amount charged for depreciation on the balance sheet.
The depreciation expense each year based on a Double-declining balance.
3)
Introduction: Depreciation links the cost of using a tangible item to the benefit received throughout its useful life. The accumulated depreciation account contains the amount charged for depreciation on the balance sheet.
The depreciation expense each year based on
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INTERMEDIATE ACCOUNTING
- White mountain supply company purchases warehouse shelving for 18,400. Shipping charges were $ 370 and assembly and set up amounted to $575. The shelves are expected to the last nine years and have a scrap value of $800. Use a straight line method of depreciation, answer the questions round your answer to the nearest cent. A- what is the annual depreciation expense in dollars of the shelving?  B-what is the accumulated depreciation in dollars after the third year? C-what is the book value of the shelving in dollars after the fifth year?arrow_forwardA machine with a cost of $65,000 has an estimated residual value of $5,000 and an estimated life of 5 years or 18,000 hours. What is the amount of depreciation for the second full year, using the double declining-balance method?arrow_forwardA machine costing P 733,615 is estimated to have a life of 10 years. If the annual rate of depreciation is 0.19, determine the total depreciation at the year 9 using a constant percentage of 6. the declining balance method. **Use four (4) decimal placesarrow_forward
- Acton, Inc., uses the double-declining-balance method for depreciation on itscomputers. Which item is not needed to compute depreciation for the first year?a. Estimated residual valueb. Expected useful life in yearsc. Original costd. All the items listed are needed.arrow_forwardA truck with a cost of $123,000 has an estimated residual value of $24,000, has an estimated useful life of 12 years, and is depreciated by the straight-line method. a. Determine the amount of the annual depreciation.$ b. Determine the book value at the end of the seventh year of use.$ c. Assuming that at the start of the eighth year the remaining life is estimated to be six years and the residual value is estimated to be $15,000, determine the depreciation expense for each of the remaining five years.$arrow_forwardConsider the following accounting information for a computer system: Cost basis of the asset, I = $10,000, Useful life, N = 5 years, Estimated salvage value, S = $0. Use the double-declining-depreciation method to compute the annual depreciation allowances and the resulting book values.arrow_forward
- Given the data, prepare a depreciation table (Depreciation Expense, Accumulated Depreciation, Carrying Amount) for the following methods: 1. Straight line 2. Service hours 3. Production method Also, identify the Gain or Loss for each year and every deprecation method if the machine is sold at: End of 1st Yr - 500,000 End of 2nd Yr - 360,000 End of 3rd Yr - 260,000 End of 4th Yr - 165,000 End of 5th Yr - 40,000arrow_forwarda storage tank acquired at the beginning of the fiscal year at a cost of 75,600 has an estimated residual value of 4000 and a estimated useful life of 20 years. a. determine the amount of annual depreciation by the straight line method b. determine the amount of depreciation for the first and second years computed by the double declining balance method . do not round the double declining balance rate. if required round answer to the nearest dollararrow_forwardAn equipment has a total depreciation of P35,000 at the end of first year. If the First cost is P140,000 and the salvage value is P10,000. Calculate the uselife by double declining balance method of depreciation.arrow_forward
- [The following information applies to the questions displayed below.] Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $83,600. The machine's useful life is estimated at 20 years, or 398,000 units of product, with a $4,000 salvage value. During its second year, the machine produces 33,800 units of product.arrow_forwardAnswer the following questions related to depreciation expense calculation. Be sure to read each question carefully. NOTE: (Round Each Answer to the Nearest dollar, Do NOT use any Commas, Dollar Signs or Periods. - Example 6000). 1. A machine with a useful life of 12 years and residual value of $10,000 was purchased for $120,000 on January 1. What is the annual depreciation expense using the straight line method? 2. A truck with a useful life of 7 years and a residual value of $0 was purchased for $49,000 on January 1. What is depreciation expense in year 5 under the straight line method? 3. A machine with a useful life of 5 years and residual value of $2,000 was purchased for $30,000 on January 1. What is the depreciation expense in year 2 using the double declining balance method? 4. A Semi-Truck with a useful life of 7 years and residual value of $50,000 was purchased for $225,000 on January 1. What is the depreciation expense for year 2 using the double declining balance? (NOTE:…arrow_forwardUsing the following information, create a Double declining, depreciation schedule. Van cost:34,440 Residual value: 1,722 Useful Life: 3 Years Example: Straight-line depreciation Schedule. Years Value at the beginning of the year Depreciation End of year Value 1 34,440 10,906 23,535 2 23,535 10,906 12,628 3 12,628 10,906 1,722arrow_forward
- Century 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage