The value of an asset decreases over a period of time due to wear and tear. This reduction in the value of asset is termed as depreciation . Given: A machine was purchased for $90,000. The machine has salvage value of $6,000 and useful life of 5 years. The machine can operate for 100,000 hours. The machine as follows: 20,000 hours in 2015; 25,000 hours in 2016; 15,000 hours in 2017; 30,000 hours in 2018; 10,000 hours in 2019. (a) To compute: The annual depreciation under each of the following depreciation methods. (1) Straight-line method. (2) Activity method. (3) Sum-of-the-years’-digits method. (4) Double-declining-balance method.

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Answer 1

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Chapter 11, Problem 11P

To determine

Introduction: The value of an asset decreases over a period of time due to wear and tear. This reduction in the value of asset is termed as depreciation.

Given:

A machine was purchased for $90,000.

The machine has salvage value of $6,000 and useful life of 5 years.

The machine can operate for 100,000 hours.

The machine as follows:

20,000 hours in 2015; 25,000 hours in 2016; 15,000 hours in 2017; 30,000 hours in 2018; 10,000 hours in 2019.

(a) To compute: The annual depreciation under each of the following depreciation methods.

(1) Straight-line method.

(2) Activity method.

(3) Sum-of-the-years’-digits method.

(4) Double-declining-balance method.

To determine

(b) To compute: The annual depreciation expenses over the life of the asset applying the following methods. (Assume a fiscal year-end of September 30.)

(1) Straight-line method.

(2) Sum-of-the-years’-digits method.

(3) Double-declining-balance method.

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Answer 2

Question

Chapter 11, Problem 11P

To determine

Introduction: The value of an asset decreases over a period of time due to wear and tear. This reduction in the value of asset is termed as depreciation.

Given:

A machine was purchased for $90,000.

The machine has salvage value of $6,000 and useful life of 5 years.

The machine can operate for 100,000 hours.

The machine as follows:

20,000 hours in 2015; 25,000 hours in 2016; 15,000 hours in 2017; 30,000 hours in 2018; 10,000 hours in 2019.

(a) To compute: The annual depreciation under each of the following depreciation methods.

(1) Straight-line method.

(2) Activity method.

(3) Sum-of-the-years’-digits method.

(4) Double-declining-balance method.

To determine

(b) To compute: The annual depreciation expenses over the life of the asset applying the following methods. (Assume a fiscal year-end of September 30.)

(1) Straight-line method.

(2) Sum-of-the-years’-digits method.

(3) Double-declining-balance method.

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Answer 3

Question

Chapter 11, Problem 11P

To determine

Introduction: The value of an asset decreases over a period of time due to wear and tear. This reduction in the value of asset is termed as depreciation.

Given:

A machine was purchased for $90,000.

The machine has salvage value of $6,000 and useful life of 5 years.

The machine can operate for 100,000 hours.

The machine as follows:

20,000 hours in 2015; 25,000 hours in 2016; 15,000 hours in 2017; 30,000 hours in 2018; 10,000 hours in 2019.

(a) To compute: The annual depreciation under each of the following depreciation methods.

(1) Straight-line method.

(2) Activity method.

(3) Sum-of-the-years’-digits method.

(4) Double-declining-balance method.

To determine

(b) To compute: The annual depreciation expenses over the life of the asset applying the following methods. (Assume a fiscal year-end of September 30.)

(1) Straight-line method.

(2) Sum-of-the-years’-digits method.

(3) Double-declining-balance method.

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Answer 4

Question

Chapter 11, Problem 11P

To determine

Introduction: The value of an asset decreases over a period of time due to wear and tear. This reduction in the value of asset is termed as depreciation.

Given:

A machine was purchased for $90,000.

The machine has salvage value of $6,000 and useful life of 5 years.

The machine can operate for 100,000 hours.

The machine as follows:

20,000 hours in 2015; 25,000 hours in 2016; 15,000 hours in 2017; 30,000 hours in 2018; 10,000 hours in 2019.

(a) To compute: The annual depreciation under each of the following depreciation methods.

(1) Straight-line method.

(2) Activity method.

(3) Sum-of-the-years’-digits method.

(4) Double-declining-balance method.

To determine

(b) To compute: The annual depreciation expenses over the life of the asset applying the following methods. (Assume a fiscal year-end of September 30.)

(1) Straight-line method.

(2) Sum-of-the-years’-digits method.

(3) Double-declining-balance method.

Expert Solution & Answer

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Answer 5

Chapter 11, Problem 11P

To determine

Introduction: The value of an asset decreases over a period of time due to wear and tear. This reduction in the value of asset is termed as depreciation.

Given:

A machine was purchased for $90,000.

The machine has salvage value of $6,000 and useful life of 5 years.

The machine can operate for 100,000 hours.

The machine as follows:

20,000 hours in 2015; 25,000 hours in 2016; 15,000 hours in 2017; 30,000 hours in 2018; 10,000 hours in 2019.

(a) To compute: The annual depreciation under each of the following depreciation methods.

(1) Straight-line method.

(2) Activity method.

(3) Sum-of-the-years’-digits method.

(4) Double-declining-balance method.

To determine

(b) To compute: The annual depreciation expenses over the life of the asset applying the following methods. (Assume a fiscal year-end of September 30.)

(1) Straight-line method.

(2) Sum-of-the-years’-digits method.

(3) Double-declining-balance method.

Answer 6

Chapter 11, Problem 11P

To determine

Introduction: The value of an asset decreases over a period of time due to wear and tear. This reduction in the value of asset is termed as depreciation.

Given:

A machine was purchased for $90,000.

The machine has salvage value of $6,000 and useful life of 5 years.

The machine can operate for 100,000 hours.

The machine as follows:

20,000 hours in 2015; 25,000 hours in 2016; 15,000 hours in 2017; 30,000 hours in 2018; 10,000 hours in 2019.

(a) To compute: The annual depreciation under each of the following depreciation methods.

(1) Straight-line method.

(2) Activity method.

(3) Sum-of-the-years’-digits method.

(4) Double-declining-balance method.

Answer 7

Chapter 11, Problem 11P

To determine

Introduction: The value of an asset decreases over a period of time due to wear and tear. This reduction in the value of asset is termed as depreciation.

Given:

A machine was purchased for $90,000.

The machine has salvage value of $6,000 and useful life of 5 years.

The machine can operate for 100,000 hours.

The machine as follows:

20,000 hours in 2015; 25,000 hours in 2016; 15,000 hours in 2017; 30,000 hours in 2018; 10,000 hours in 2019.

(a) To compute: The annual depreciation under each of the following depreciation methods.

(1) Straight-line method.

(2) Activity method.

(3) Sum-of-the-years’-digits method.

(4) Double-declining-balance method.

Answer 8

To determine

(b) To compute: The annual depreciation expenses over the life of the asset applying the following methods. (Assume a fiscal year-end of September 30.)

(1) Straight-line method.

(2) Sum-of-the-years’-digits method.

(3) Double-declining-balance method.

Answer 9

To determine

(b) To compute: The annual depreciation expenses over the life of the asset applying the following methods. (Assume a fiscal year-end of September 30.)

(1) Straight-line method.

(2) Sum-of-the-years’-digits method.

(3) Double-declining-balance method.

Answer 10

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Answer 11

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Answer 12

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Answer 13

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(b) To compute: The annual depreciation expenses over the life of the asset applying the following methods. (Assume a fiscal year-end of September 30.)

(1) Straight-line method.

(2) Sum-of-the-years’-digits method.

(3) Double-declining-balance method.

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Chapter 11 Solutions

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(b) To compute: The annual depreciation expenses over the life of the asset applying the following methods. (Assume a fiscal year-end of September 30.) (1) Straight-line method. (2) Sum-of-the-years’-digits method. (3) Double-declining-balance method.

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Chapter 11 Solutions

(b) To compute: The annual depreciation expenses over the life of the asset applying the following methods. (Assume a fiscal year-end of September 30.)

(1) Straight-line method.

(2) Sum-of-the-years’-digits method.

(3) Double-declining-balance method.