menu
bartleby
search
close search
Hit Return to see all results
Subscribe
Sign in

Business
AccountingIntermediate Accounting: Reporting And Analysis3rd Edition

close solutoin list
Chapter 11, Problem 3P
BuyFindarrow_forward

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281

Solutions

Chapter
Section
Problem 1GI
Problem 2GI
Problem 3GI
Problem 4GI
Problem 5GI
Problem 6GI
Problem 7GI
Problem 8GI
Problem 9GI
Problem 10GI
Problem 11GI
Problem 12GI
Problem 13GI
Problem 14GI
Problem 15GI
Problem 16GI
Problem 17GI
Problem 18GI
Problem 19GI
Problem 20GI
Problem 21GI
Problem 22GI
Problem 23GI
Problem 1MC
Problem 2MC
Problem 3MC
Problem 4MC
Problem 5MC
Problem 6MC
Problem 7MC
Problem 8MC
Problem 9MC
Problem 10MC
Problem 1RE
Problem 2RE
Problem 3RE
Problem 4RE
Problem 5RE
Problem 6RE
Problem 7RE
Problem 8RE
Problem 9RE
Problem 10RE
Problem 11RE
Problem 12RE
Problem 13RE
Problem 14RE
Problem 1E
Problem 2E
Problem 3E
Problem 4E
Problem 5E
Problem 6E
Problem 7E
Problem 8E
Problem 9E
Problem 10E
Problem 11E
Problem 12E
Problem 13E
Problem 14E
Problem 15E
Problem 16E
Problem 17E
Problem 18E
Problem 19E
Problem 20E
Problem 1P
Problem 2P
Problem 3P
Problem 4P
Problem 5P
Problem 6P
Problem 7P
Problem 8P
Problem 9P
Problem 10P
Problem 11P
Problem 12P
Problem 13P
Problem 14P
Problem 15P
Problem 16P
Problem 17P
Problem 18P
Problem 19P
Problem 20P
Problem 21P
Problem 1C
Problem 2C
Problem 3C
Problem 4C
Problem 5C
Problem 6C
BuyFindarrow_forward

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281
Textbook Problem
13 views

Depreciation Methods 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. 1. Prepare a schedule showing depreciation expense for 2019 and 2020 and the book value on December 31, 2019, and December 31, 2020, for each of the following methods:
  2. a. straight-line
  3. b. sum-of-the-years’-digits
  4. c. double-declining-balance
  5. d. 150%-declining-balance
  6. 2. Next Level Holding all other things equal, what is the effect of depreciation on the rate of return?

1.

To determine

Prepare a schedule that screens the depreciation expense for 2019 and 2020, and the book value on December 31, 2019 and 2020 for each of the given depreciation method.

Explanation

Depreciation expense: Depreciation expense is a non-cash expense, which is recorded on the income statement reflecting the consumption of economic benefits of long-term asset on account of its wear and tear or obsolesces.

Straight-line depreciation method: The depreciation method which assumes that the consumption of economic benefits of long-term asset could be distributed equally throughout the useful life of the asset is referred to as straight-line method.

Sum-of- the-years’ digits method:  Sum-of-the years’ digits method determines the depreciation by multiplying the depreciable base and declining fraction.

Double-declining-balance method: The depreciation method which assumes that the consumption of economic benefits of long-term asset is high in the early years but gradually declines towards the end of its useful life is referred to as double-declining-balance method

Prepare a schedule that screens the depreciation expense for 2019 and 2020, and the book value on December 31, 2019 and 2020 for each of the given depreciation method as follows:

Year

Book Value

(A)

Depreciation

(B)

Ending Book Value

(A−B)

a. Straight-line Method:
2019$250,000 $11,500 (1)$238,500
2020$238,500 $11,500 (1) $227,000
b. Sum-of-the-years’-digits:
2019$250,000 $21,905 (4)$228,095
2020$228,095 $20,810 (4)$207,285
c. Double-declining-balance:
2019$250,000 $25,000 (6) $225,000
2020$225,000 $22,500 (6) $202,500
d. 150%-declining balance method:
2019$250,000 $18,750 (8) $231,250
2020$231,250$17,344 (8) $213,906

Table (1)

Working note (1):

Calculate the depreciation expense under straight line method:

2019:

Depreciation expenses=Acquisition cost – Residual valueUseful life =$250,000−$20,00020 years=$11,500 

2020:

Depreciation expenses=Acquisition cost – Residual valueUseful life =$250,000−$20,00020 years=$11,500 

Working note (2):

Calculate the denominator of the fraction for sum-of-the-year’s digit.

Sum-of-the-digits = n×(n+1)2=20×(20+1)2=20×212=210

Working note (3):

Calculate the depreciable base of asset

2.

To determine

State the effect of the depreciation expense on the rate of return.

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution
arrow_back
Chapter 11,
Problem 2P
Chapter 11,
Problem 4P
arrow_forward

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Chapter 11 Solutions

Show all chapter solutions add
Ch-11 P-1GICh-11 P-2GICh-11 P-3GICh-11 P-4GICh-11 P-5GICh-11 P-6GICh-11 P-7GICh-11 P-8GICh-11 P-9GICh-11 P-10GI
Ch-11 P-11GICh-11 P-12GICh-11 P-13GICh-11 P-14GICh-11 P-15GICh-11 P-16GICh-11 P-17GICh-11 P-18GICh-11 P-19GICh-11 P-20GICh-11 P-21GICh-11 P-22GICh-11 P-23GICh-11 P-1MCCh-11 P-2MCCh-11 P-3MCCh-11 P-4MCCh-11 P-5MCCh-11 P-6MCCh-11 P-7MCCh-11 P-8MCCh-11 P-9MCCh-11 P-10MCCh-11 P-1RECh-11 P-2RECh-11 P-3RECh-11 P-4RECh-11 P-5RECh-11 P-6RECh-11 P-7RECh-11 P-8RECh-11 P-9RECh-11 P-10RECh-11 P-11RECh-11 P-12RECh-11 P-13RECh-11 P-14RECh-11 P-1ECh-11 P-2ECh-11 P-3ECh-11 P-4ECh-11 P-5ECh-11 P-6ECh-11 P-7ECh-11 P-8ECh-11 P-9ECh-11 P-10ECh-11 P-11ECh-11 P-12ECh-11 P-13ECh-11 P-14ECh-11 P-15ECh-11 P-16ECh-11 P-17ECh-11 P-18ECh-11 P-19ECh-11 P-20ECh-11 P-1PCh-11 P-2PCh-11 P-3PCh-11 P-4PCh-11 P-5PCh-11 P-6PCh-11 P-7PCh-11 P-8PCh-11 P-9PCh-11 P-10PCh-11 P-11PCh-11 P-12PCh-11 P-13PCh-11 P-14PCh-11 P-15PCh-11 P-16PCh-11 P-17PCh-11 P-18PCh-11 P-19PCh-11 P-20PCh-11 P-21PCh-11 P-1CCh-11 P-2CCh-11 P-3CCh-11 P-4CCh-11 P-5CCh-11 P-6C

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

Participative Budgeting, Not-for-Profit Setting Dwight D. Eisenhower was the 34th president of the United State...

Managerial Accounting: The Cornerstone of Business Decision-Making

Aging of receivables; estimating allowance for doubtful accounts Wig Creations Company supplies wigs and hair c...

Financial And Managerial Accounting

Analyze Chipotle Mexican Grill Chipotle Mexican Grill, Inc. (CMG) is a quick-service restaurant providing a foc...

Corporate Financial Accounting

The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fisca...

Financial Accounting

What are the three basic phases of the accounting process?

College Accounting, Chapters 1-27

Communication Motion Designs Inc. has paid quarterly cash dividends since 20Y7. These dividends have steadily i...

Financial & Managerial Accounting

What is Software-as-a-Service (SaaS)?

Accounting Information Systems

Common stockholders profitability analysis A company reports the following: Net income 1,000,000 Preferred divi...

Accounting

(Varieties of Oligopolies) Do the firms in an oligopoly act independently or interdependently? Explain your ans...

ECON MICRO

What kinds of factors encourage certain people to start new businesses?

Foundations of Business (MindTap Course List)

If the price of pasta increases and a consumer buys more pasta, we can infer that a. pasta is a normal good and...

Principles of Economics (MindTap Course List)

Use the following equations. C= $100 + .8Y I= $200 G = $250 X=$100 — .2Y What is the new equilibrium level of r...

Economics:

Primary Research: Seeking Customer Feedback Through an Online Survey. Companies use surveys to continually Impr...

Essentials of Business Communication (MindTap Course List)

Once again, in an hour, Mateo can wash 2 cars or mow 1 lawn, and Tyler can wash 3 cars or mow 1 lawn. Who has t...

Principles of Microeconomics (MindTap Course List)

Who is responsible for setting monetary policy in the United States? How is this group chosen?

Brief Principles of Macroeconomics (MindTap Course List)

(Sunk Cost and Choice) Suppose you go to a restaurant and buy an expensive meal. Half way through, despite feel...

ECON: MICRO4 (New, Engaging Titles from 4LTR Press)

The CPI measures approximately the same economic phenomenon as a. nominal GDP b. real GDP c. the GDP deflator d...

Principles of Macroeconomics (MindTap Course List)

Examine the responsibility accounting performance reporting illustration shown in Figure 16.2 (pg. 623). a. Des...

Accounting Information Systems

Describe the bases for segmenting business markets

MKTG 12:STUDENT ED.-TEXT

Why might economic advisers to the president disagree about a question of policy?

Essentials of Economics (MindTap Course List)

FUTURE VALUE OF AN ANNUITY Kind the future values of the following ordinary annuities: a. FV of 400 paid each 6...

Fundamentals of Financial Management, Concise Edition (MindTap Course List)

Discuss the differences between statistics as numerical facts and statistics as a discipline or field of study.

STATISTICS F/BUSINESS+ECONOMICS-TEXT

Describe the different ways in which capital can be transferred from suppliers of capital to those who are dema...

Fundamentals of Financial Management (MindTap Course List)

Suppose there is an external cost, or negative externality, associated with production of a certain good. What'...

ECON MACRO

Explain how relation-ship marketing can move customers up the loyalty ladder.

Contemporary Marketing

As HR manager for a small company that makes computer games and software, what are some steps that you might ta...

Management, Loose-Leaf Version

Fair value journal entries, trading investments Jets Bancorp Inc. purchased a portfolio of trading securities d...

Financial & Managerial Accounting

When the Petty Cash account is replenished at the end of the month, the journal entry includes which of the fol...

College Accounting (Book Only): A Career Approach

Identify each of the following accounts of Kaiser Services Co. as asset, liability, owners equity, revenue, or ...

Financial Accounting

Which of the following accounts would not be listed in the Income Statement column(s) of the work sheet? a. Inc...

College Accounting (Book Only): A Career Approach

Number of times interest charges are earned The following data were taken from recent annual reports of Southwe...

Accounting (Text Only)

What is a permanent account? On which financial statement are permanent

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

PV AND LOAN ELIGIBILITY You have saved 4,000 for a down payment on a new car. The largest monthly payment you c...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

The main policy goal of the unemployment insurance system is to reduce the a. search effort of the unemployed. ...

Principles of Macroeconomics (MindTap Course List)

Why is a reduction in the required reserve ratio such a powerful monetary policy tool? Why is it so seldom used...

Exploring Economics

INTEREST RATE SENSITIVITY .An investor purchased the following 5 bonds. Each bond had a par value of 1,000 and ...

Fundamentals of Financial Management (MindTap Course List)

Because there are computer-based documentation products that can draw data flow diagrams and systems flowcharts...

Pkg Acc Infor Systems MS VISIO CD

The Nielsen Company surveyed consumers in 47 markets from Europe, Asia-Pacific, the Americas, and the Middle Ea...

Statistics for Business & Economics, Revised (MindTap Course List)

The expected period of time that will elapse between the date of a capital investment and thecomplete recovery ...

Survey of Accounting (Accounting I)

Adjusting entry for inventory shrinkage Omega Tire Co.s perpetual inventory records indicate that 3,145,000 of ...

Corporate Financial Accounting

Check any item of employee compensation not subject to withholding: _____1. Company-provided lunches at the pla...

PAYROLL ACCT.,2019 ED.(LL)-TEXT

The adoption level of a new product can often be modeled as an S-shaped curve called the Pearl (or logistic) cu...

Practical Management Science

The term socialism refers to which of the following? a. A religion centered on community interaction b. An econ...

Economics For Today

Suppose the landmass known to you as the United States of America had been composed, since the nations founding...

Economics (MindTap Course List)

An investment of 2,000 produces a net cash flow of 800 in the first year, and 2,000 in the second year. What is...

Cornerstones of Cost Management (Cornerstones Series)

Insert semicolons, colons, and commas where needed, and delete them where they are unnecessary. Write correct i...

Bcom

Segregated neighborhoods of blue and green people can be the result of the people of each color preferring a ce...

Macroeconomics

List the areas typically considered within purchasings span of control. Explain why it is important that purcha...

Purchasing and Supply Chain Management

How could a collectively bargained higher wage rate in the unionized sector of the economy lead to a lower wage...

Microeconomics

bartleby
© bartleby 2019