Depreciation Methods
On January 1, 2019, Loeffler Company acquired a machine at a cost of $200,000. Loeffler estimates that it will use the machine for 4 years or 8,000 machine hours. It estimates that after 4 years the machine can be sold for $20,000. Loeffler uses the machine for 2,100 and 1,800 machine hours in 2019 and 2020, respectively.
Required:
Compute depreciation expense for 2019 and 2020 using the (1) straight-line, (2) double-declining-balance, and (3) units-of-production methods of depreciation.
Concept introduction:
The Cost of the fixed asset represents the capability of assistance an asset can give. Except for Land, other assets’ potential declines over the useful life as much as an asset is utilized in the operations of the company.
Requirement 1:
To compute:
Depreciation using Straight Line Method.
Straight Line method appropriates an equal amount of an assets cost to depreciation expense for each year throughout the assets useful life.
Straight Line Depreciation = (Cost −Re...
Concept introduction:
The Cost of the fixed asset represents the capability of assistance an asset can give. Except for Land, other assets’ potential declines over the useful life as much as an asset is utilized in the operations of the company.
Requirement 2:
To compute:
depreciation using Double declining balance method.
Concept introduction:
The Cost of the fixed asset represents the capability of assistance an asset can give. Except for Land, other assets’ potential declines over the useful life as much as an asset is utilized in the operations of the company.
Requirement 3:
To compute:
depreciation using Units-of-production method.
Corporate Financial Accounting
Accounting Information Systems
Financial & Managerial Accounting
Principles of Microeconomics (MindTap Course List)
Principles of Macroeconomics (MindTap Course List)
Fundamentals of Financial Management (MindTap Course List)
STATISTICS F/BUSINESS+ECONOMICS-TEXT
Essentials of Business Communication (MindTap Course List)
Foundations of Business (MindTap Course List)
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
Brief Principles of Macroeconomics (MindTap Course List)
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
Principles of Economics (MindTap Course List)
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
Probability and Statistics for Engineering and the Sciences
Financial And Managerial Accounting
Principles of Information Security (MindTap Course List)
Database Systems: Design, Implementation, & Management
Fundamentals of Information Systems
Principles of Information Systems (MindTap Course List)
A Guide to SQL
Database Systems: Design, Implementation, & Management
Fundamentals of Information Systems
Precision Machining Technology (MindTap Course List)
Automotive Technology: A Systems Approach (MindTap Course List)
Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)
Mechanics of Materials (MindTap Course List)
Fundamentals of Geotechnical Engineering (MindTap Course List)
Principles of Information Systems (MindTap Course List)
Systems Analysis and Design (Shelly Cashman Series) (MindTap Course List)
Management Of Information Security
Electric Motor Control
Principles of Geotechnical Engineering (MindTap Course List)
Fundamentals of Chemical Engineering Thermodynamics (MindTap Course List)
Solid Waste Engineering
International Edition---engineering Mechanics: Statics, 4th Edition
EBK ELECTRICAL WIRING RESIDENTIAL
Automotive Technology
Steel Design (Activate Learning with these NEW titles from Engineering!)
Enhanced Discovering Computers 2017 (Shelly Cashman Series) (MindTap Course List)
Network+ Guide to Networks (MindTap Course List)