IENG 4140 Ch 7 Depreciation HW F23

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Problem 5 16th Edition Asset Cost $ 50,000 Salvage $ 5,000 Depr. Life 5 Manual Method Straight Line Depreciation Method Double Declining Balance Depreciation Method MACRS Depreciation Method Year Book Value Year Book Value Year Factor Book Value 1 $ 9,000 $ 9,000 $ 41,000 1 $ 20,000 $ 20,000 $ 30,000 1 0.2000 $ 9,000 $ 9,000 $ 41,000 2 $ 9,000 $ 18,000 $ 32,000 2 $ 12,000 $ 32,000 $ 18,000 2 0.3200 $ 14,400 $ 23,400 $ 26,600 3 $ 9,000 $ 27,000 $ 23,000 3 $ 7,200 $ 39,200 $ 10,800 3 0.1920 $ 8,640 $ 32,040 $ 17,960 4 $ 9,000 $ 36,000 $ 14,000 4 $ 4,320 $ 43,520 $ 6,480 4 0.1152 $ 5,184 $ 37,224 $ 12,776 5 $ 9,000 $ 45,000 $ 5,000 5 $ 2,592 $ 46,112 $ 3,888 5 0.1152 $ 5,184 $ 42,408 $ 7,592 5 (Real) $ 1,480 $ 45,000 $ 5,000 6 0.0576 $ 2,592 $ 45,000 $ 5,000 Notes: Notes: Adjustment made in year 5 to arrive at salvage value 5 year property classification (ref. page 320 in the text) Year 6 is really a partial year's depreciation Excel Method Double Declining Balance Depreciation Method Year Book Value 1 $ 20,000 $ 20,000 $ 30,000 2 $ 12,000 $ 32,000 $ 18,000 3 $ 7,200 $ 39,200 $ 10,800 4 $ 4,320 $ 43,520 $ 6,480 5 $ 1,480 $ 45,000 $ 5,000 5 (Real) $ 1,480 $ 45,000 $ 5,000 Problem 5 17th Edition Asset Cost $ 24,750 Salvage $ - Depr. Life 7 Manual Method Straight Line Depreciation Method Double Declining Balance Depreciation Method MACRS Depreciation Method Year Book Value Year Book Value Year Factor Book Value 1 $ 3,536 $ 3,536 $ 21,214 1 $ 7,071 $ 7,071 $ 17,679 1 0.1429 $ 3,537 $ 3,537 $ 21,213 2 $ 3,536 $ 7,071 $ 17,679 2 $ 5,051 $ 12,122 $ 12,628 2 0.2449 $ 6,061 $ 9,598 $ 15,152 3 $ 3,536 $ 10,607 $ 14,143 3 $ 3,608 $ 15,730 $ 9,020 3 0.1749 $ 4,329 $ 13,927 $ 10,823 4 $ 3,536 $ 14,143 $ 10,607 4 $ 2,577 $ 18,307 $ 6,443 4 0.1249 $ 3,091 $ 17,018 $ 7,732 5 $ 3,536 $ 17,679 $ 7,071 5 $ 1,841 $ 20,148 $ 4,602 5 0.0893 $ 2,210 $ 19,228 $ 5,522 6 $ 3,536 $ 21,214 $ 3,536 6 $ 1,315 $ 21,463 $ 3,287 6 0.0892 $ 2,208 $ 21,436 $ 3,314 7 $ 3,536 $ 24,750 $ - 7 $ 939 $ 22,402 $ 2,348 7 0.0893 $ 2,210 $ 23,646 $ 1,104 7 (Real) $ 3,287 $ 24,750 $ - 8 0.0446 $ 1,104 $ 24,750 $ - Notes: Notes: Adjustment made in year 7 to arrive at salvage value 7 year property classification (ref. page 334 in the text) Year 8 is really a partial year's depreciation Excel Method Double Declining Balance Depreciation Method Year Book Value 1 $ 7,071 $ 7,071 $ 17,679 2 $ 5,051 $ 12,122 $ 12,628 3 $ 3,608 $ 15,730 $ 9,020 4 $ 2,577 $ 18,307 $ 6,443 5 $ 1,841 $ 20,148 $ 4,602 6 $ 1,315 $ 21,463 $ 3,287 7 $ 939 $ 22,402 $ 2,348 Depreciation Expense Accumulated Depreciation Depreciation Expense Accumulated Depreciation Depreciation Expense Accumulated Depreciation Depreciation Expense Accumulated Depreciation Depreciation Expense Accumulated Depreciation Depreciation Expense Accumulated Depreciation Depreciation Expense Accumulated Depreciation Depreciation Expense Accumulated Depreciation
Problem 6 16th and 17th Edition are the same Asset Cost $ 145,000 Depreciable basis is the asset cost plus whatever is required to get the machine installed and running Salvage $ 15,000 Depr. Life 10 (see note under MACRS) Manual Method Straight Line Depreciation Method Double Declining Balance Depreciation Method MACRS Depreciation Method Year Book Value Year Book Value Year Factor Book Value 1 $ 13,000 $ 13,000 $ 132,000 1 $ 29,000 $ 29,000 $ 116,000 1 0.1000 $ 13,000 $ 13,000 $ 132,000 2 $ 13,000 $ 26,000 $ 119,000 2 $ 23,200 $ 52,200 $ 92,800 2 0.1800 $ 23,400 $ 36,400 $ 108,600 3 $ 13,000 $ 39,000 $ 106,000 3 $ 18,560 $ 70,760 $ 74,240 3 0.1440 $ 18,720 $ 55,120 $ 89,880 4 $ 13,000 $ 52,000 $ 93,000 4 $ 14,848 $ 85,608 $ 59,392 4 0.1152 $ 14,976 $ 70,096 $ 74,904 5 $ 13,000 $ 65,000 $ 80,000 5 $ 11,878 $ 97,486 $ 47,514 5 0.0922 $ 11,986 $ 82,082 $ 62,918 6 $ 13,000 $ 78,000 $ 67,000 6 $ 9,503 $ 106,989 $ 38,011 6 0.0737 $ 9,581 $ 91,663 $ 53,337 7 $ 13,000 $ 91,000 $ 54,000 7 $ 7,602 $ 114,591 $ 30,409 7 0.0655 $ 8,515 $ 100,178 $ 44,822 8 $ 13,000 $ 104,000 $ 41,000 8 $ 6,082 $ 120,673 $ 24,327 8 0.0655 $ 8,515 $ 108,693 $ 36,307 9 $ 13,000 $ 117,000 $ 28,000 9 $ 4,865 $ 125,538 $ 19,462 9 0.0656 $ 8,528 $ 117,221 $ 27,779 10 $ 13,000 $ 130,000 $ 15,000 10 $ 3,892 $ 129,431 $ 15,569 10 0.0655 $ 8,515 $ 125,736 $ 19,264 10 (Real) $ 4,462 $ 130,000 $ 15,000 11 0.0328 $ 4,264 $ 130,000 $ 15,000 Notes: Notes: Adjustment made in year 10 to arrive at salvage value 10 year MACRS property classification; ref. page 320 (16th) and 334 (17th) in the text Year 11 is really a partial year's depreciation Excel Method Double Declining Balance Depreciation Method Year Book Value 1 $ 29,000 $ 29,000 $ 116,000 2 $ 23,200 $ 52,200 $ 92,800 3 $ 18,560 $ 70,760 $ 74,240 4 $ 14,848 $ 85,608 $ 59,392 5 $ 11,878 $ 97,486 $ 47,514 6 $ 9,503 $ 106,989 $ 38,011 7 $ 7,602 $ 114,591 $ 30,409 8 $ 6,082 $ 120,673 $ 24,327 9 $ 4,865 $ 125,538 $ 19,462 10 $ 3,892 $ 129,431 $ 15,569 10 (Real) $ 4,462 $ 130,000 $ 15,000 Depreciation Expense Accumulated Depreciation Depreciation Expense Accumulated Depreciation Depreciation Expense Accumulated Depreciation Depreciation Expense Accumulated Depreciation
Problem 7 16th Edition Asset Cost $ 175,000 Salvage $ 40,000 (25% of the hardware cost) Depr. Life 5 Manual Method Straight Line Depreciation Method Double Declining Balance Depreciation Method MACRS Depreciation Method Year Book Value Year Book Value Year Factor Book Value 1 $ 27,000 $ 27,000 $ 148,000 1 $ 70,000 $ 70,000 $ 105,000 1 0.2000 $ 27,000 $ 27,000 $ 148,000 2 $ 27,000 $ 54,000 $ 121,000 2 $ 42,000 $ 112,000 $ 63,000 2 0.3200 $ 43,200 $ 70,200 $ 104,800 3 $ 27,000 $ 81,000 $ 94,000 3 $ 25,200 $ 137,200 $ 37,800 3 0.1920 $ 25,920 $ 96,120 $ 78,880 4 $ 27,000 $ 108,000 $ 67,000 3 (Real) $ 23,000 $ 135,000 $ 40,000 4 0.1152 $ 15,552 $ 111,672 $ 63,328 5 $ 27,000 $ 135,000 $ 40,000 4 $ - $ 135,000 $ 40,000 5 0.1152 $ 15,552 $ 127,224 $ 47,776 5 $ - $ 135,000 $ 40,000 6 0.0576 $ 7,776 $ 135,000 $ 40,000 Notes: Adjustment made in year 5 to arrive at salvage value Notes: 5 year property classification (ref. page 320 in the text) Year 6 is really a partial year's depreciation Excel Method Double Declining Balance Depreciation Method Year Book Value 1 $ 70,000 $ 70,000 $ 105,000 2 $ 42,000 $ 112,000 $ 63,000 3 $ 23,000 $ 135,000 $ 40,000 4 $ - $ 135,000 $ 40,000 5 $ - $ 135,000 $ 40,000 Problem 7 17th Edition Asset Cost $ 80,000 Salvage $ - Depr. Life 5 Manual Method Straight Line Depreciation Method Double Declining Balance Depreciation Method MACRS Depreciation Method Year Book Value Year Book Value Year Factor Book Value 1 $ 16,000 $ 16,000 $ 64,000 1 $ 32,000 $ 32,000 $ 48,000 1 0.2000 $ 16,000 $ 16,000 $ 64,000 2 $ 16,000 $ 32,000 $ 48,000 2 $ 19,200 $ 51,200 $ 28,800 2 0.3200 $ 25,600 $ 41,600 $ 38,400 3 $ 16,000 $ 48,000 $ 32,000 3 $ 11,520 $ 62,720 $ 17,280 3 0.1920 $ 15,360 $ 56,960 $ 23,040 4 $ 16,000 $ 64,000 $ 16,000 3 (Real) $ 28,800 $ 80,000 $ - 4 0.1152 $ 9,216 $ 66,176 $ 13,824 5 $ 16,000 $ 80,000 $ - 4 $ - $ 80,000 $ - 5 0.1152 $ 9,216 $ 75,392 $ 4,608 5 $ - $ 80,000 $ - 6 0.0576 $ 4,608 $ 80,000 $ - Notes: Adjustment made in year 5 to arrive at salvage value Notes: 5 year property classification (ref. page 334 in the text) Year 6 is really a partial year's depreciation Excel Method Double Declining Balance Depreciation Method Year Book Value 1 $ 32,000 $ 32,000 $ 48,000 2 $ 19,200 $ 51,200 $ 28,800 3 $ 11,520 $ 62,720 $ 17,280 3 (Real) $ 28,800 $ 80,000 $ - 4 $ - $ 80,000 $ - 5 $ - $ 80,000 $ - (include installation but not training as that is not depreciable) Depreciation Expense Accumulated Depreciation Depreciation Expense Accumulated Depreciation Depreciation Expense Accumulated Depreciation Depreciation Expense Accumulated Depreciation Depreciation Expense Accumulated Depreciation Depreciation Expense Accumulated Depreciation Depreciation Expense Accumulated Depreciation Depreciation Expense Accumulated Depreciation
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Problem 8 16th and 17th Edition are the same Asset Cost $ 60,000 Salvage $ 12,000 Depr. Life 14 Manual Method Straight Line Depreciation Method Double Declining Balance Depreciati Year Book Value Year 1 $ 3,429 $ 3,429 $ 56,571 1 $ 8,571 $ 8,571 2 $ 3,429 $ 6,857 $ 53,143 2 $ 7,347 $ 15,918 3 $ 3,429 $ 10,286 $ 49,714 3 $ 6,297 $ 22,216 4 $ 3,429 $ 13,714 $ 46,286 4 $ 5,398 $ 27,613 5 $ 3,429 $ 17,143 $ 42,857 5 $ 4,627 $ 32,240 6 $ 3,429 $ 20,571 $ 39,429 6 $ 3,966 $ 36,206 7 $ 3,429 $ 24,000 $ 36,000 7 $ 3,399 $ 39,605 8 $ 3,429 $ 27,429 $ 32,571 8 $ 2,914 $ 42,519 9 $ 3,429 $ 30,857 $ 29,143 9 $ 2,497 $ 45,016 10 $ 3,429 $ 34,286 $ 25,714 10 $ 2,141 $ 47,157 11 $ 3,429 $ 37,714 $ 22,286 11 $ 843 $ 48,000 12 $ 3,429 $ 41,143 $ 18,857 12 $ - $ 48,000 13 $ 3,429 $ 44,571 $ 15,429 13 $ - $ 48,000 14 $ 3,429 $ 48,000 $ 12,000 14 $ - $ 48,000 Notes: Depreciation ends year 11 - you achieve sa Excel Method Double Declining Balance Depreciati Year 1 $ 8,571 $ 8,571 2 $ 7,347 $ 15,918 3 $ 6,297 $ 22,216 4 $ 5,398 $ 27,613 5 $ 4,627 $ 32,240 6 $ 3,966 $ 36,206 7 $ 3,399 $ 39,605 8 $ 2,914 $ 42,519 9 $ 2,497 $ 45,016 10 $ 2,141 $ 47,157 11 $ 843 $ 48,000 12 $ - $ 48,000 13 $ - $ 48,000 14 $ - $ 48,000 Depreciation Expense Accumulated Depreciation Depreciation Expense Accumulated Depreciation Expense Depreciation
ion Method MACRS Depreciation Method Book Value Year Factor Book Value $ 51,429 1 0.0500 $ 2,400 $ 2,400 $ 57,600 $ 44,082 2 0.0950 $ 4,560 $ 6,960 $ 53,040 $ 37,784 3 0.0855 $ 4,104 $ 11,064 $ 48,936 $ 32,387 4 0.0770 $ 3,696 $ 14,760 $ 45,240 $ 27,760 5 0.0693 $ 3,326 $ 18,086 $ 41,914 $ 23,794 6 0.0623 $ 2,990 $ 21,077 $ 38,923 $ 20,395 7 0.0590 $ 2,832 $ 23,909 $ 36,091 $ 17,481 8 0.0590 $ 2,832 $ 26,741 $ 33,259 $ 14,984 9 0.0591 $ 2,837 $ 29,578 $ 30,422 $ 12,843 10 0.0590 $ 2,832 $ 32,410 $ 27,590 $ 12,000 11 0.0591 $ 2,837 $ 35,246 $ 24,754 $ 12,000 12 0.0590 $ 2,832 $ 38,078 $ 21,922 $ 12,000 13 0.0591 $ 2,837 $ 40,915 $ 19,085 $ 12,000 14 0.0590 $ 2,832 $ 43,747 $ 16,253 15 0.0591 $ 2,837 $ 46,584 $ 13,416 16 0.0295 $ 1,416 $ 48,000 $ 12,000 alvage value Notes: 7 year MACRS property classification (ref. pages 318 and 320 in the text) Year 8 is really a partial year's depreciation ion Method Book Value $ 51,429 $ 44,082 $ 37,784 $ 32,387 $ 27,760 $ 23,794 $ 20,395 $ 17,481 $ 14,984 $ 12,843 $ 12,000 $ 12,000 $ 12,000 $ 12,000 Depreciation Expense Accumulated Depreciation
Problem 9 16th Edition Asset Cost $ 35,000 Salvage $ 7,000 Depr. Life 7 (see note under MACRS) Manual Method Straight Line Depreciation Method Double Declining Balance Depreciati Year Book Value Year 1 $ 4,000 $ 4,000 $ 31,000 1 $ 10,000 $ 10,000 2 $ 4,000 $ 8,000 $ 27,000 2 $ 7,143 $ 17,143 3 $ 4,000 $ 12,000 $ 23,000 3 $ 5,102 $ 22,245 4 $ 4,000 $ 16,000 $ 19,000 4 $ 3,644 $ 25,889 5 $ 4,000 $ 20,000 $ 15,000 5 $ 2,111 $ 28,000 6 $ 4,000 $ 24,000 $ 11,000 6 $ - $ 28,000 7 $ 4,000 $ 28,000 $ 7,000 7 $ - $ 28,000 Notes: Excel Method Double Declining Balance Depreciati Year 1 $ 10,000 $ 10,000 2 $ 7,143 $ 17,143 3 $ 5,102 $ 22,245 4 $ 3,644 $ 25,889 5 $ 2,111 $ 28,000 6 $ - $ 28,000 7 $ - $ 28,000 Problem 9 17h Edition Asset Cost $ 3,000 Salvage $ 200 Depr. Life 7 (see note under MACRS) Manual Method Straight Line Depreciation Method Double Declining Balance Depreciati Year Book Value Year 1 $ 400 $ 400 $ 2,600 1 $ 857 $ 857 2 $ 400 $ 800 $ 2,200 2 $ 612 $ 1,469 3 $ 400 $ 1,200 $ 1,800 3 $ 437 $ 1,907 4 $ 400 $ 1,600 $ 1,400 4 $ 312 $ 2,219 5 $ 400 $ 2,000 $ 1,000 5 $ 223 $ 2,442 6 $ 400 $ 2,400 $ 600 6 $ 159 $ 2,602 7 $ 400 $ 2,800 $ 200 7 $ 114 $ 2,715 7 (Real) $ 198 $ 2,800 Depreciation Expense Accumulated Depreciation Depreciation Expense Accumulated Depreciation Depreciation ends year 5 - you have achiev value Depreciation Expense Accumulated Depreciation Depreciation Expense Accumulated Depreciation Depreciation Expense Accumulated Depreciation
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Excel Method Double Declining Balance Depreciati Year 1 $ 857 $ 857 2 $ 612 $ 1,469 3 $ 437 $ 1,907 4 $ 312 $ 2,219 5 $ 223 $ 2,442 6 $ 159 $ 2,602 7 $ 114 $ 2,715 7 (Real) $ 198 $ 2,800 Depreciation Expense Accumulated Depreciation
ion Method MACRS Depreciation Method Book Value Year Factor Book Value $ 25,000 1 0.1429 $ 4,001 $ 4,001 $ 30,999 $ 17,857 2 0.2449 $ 6,857 $ 10,858 $ 24,142 $ 12,755 3 0.1749 $ 4,897 $ 15,756 $ 19,244 $ 9,111 4 0.1249 $ 3,497 $ 19,253 $ 15,747 $ 7,000 5 0.0893 $ 2,500 $ 21,753 $ 13,247 $ 7,000 6 0.0892 $ 2,498 $ 24,251 $ 10,749 $ 7,000 7 0.0893 $ 2,500 $ 26,751 $ 8,249 8 0.0446 $ 1,249 $ 28,000 $ 7,000 Notes: 7 year MACRS property classification (ref. pages 318 and 320 in the text) Year 8 is really a partial year's depreciation ion Method Book Value $ 25,000 $ 17,857 $ 12,755 $ 9,111 $ 7,000 $ 7,000 $ 7,000 ion Method MACRS Depreciation Method Book Value Year Factor Book Value $ 2,143 1 0.1429 $ 400 $ 400 $ 2,600 $ 1,531 2 0.2449 $ 686 $ 1,086 $ 1,914 $ 1,093 3 0.1749 $ 490 $ 1,576 $ 1,424 $ 781 4 0.1249 $ 350 $ 1,925 $ 1,075 $ 558 5 0.0893 $ 250 $ 2,175 $ 825 $ 398 6 0.0892 $ 250 $ 2,425 $ 575 $ 285 7 0.0893 $ 250 $ 2,675 $ 325 $ 200 8 0.0446 $ 125 $ 2,800 $ 200 Notes: 7 year MACRS property classification (ref. page 334 in the text) Depreciation Expense Accumulated Depreciation ved salvage Depreciation Expense Accumulated Depreciation
Year 8 is really a partial year's depreciation ion Method Book Value $ 2,143 $ 1,531 $ 1,093 $ 781 $ 558 $ 398 $ 285 $ 200
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Problem 10 16th Edition Asset Cost $ 100,000 Salvage $ 5,000 Depr. Life 7 (see note under MACRS) Manual Method Straight Line Depreciation Method Double Declining Balance Depreciati Year Book Value Year 1 $ 13,571 $ 13,571 $ 86,429 1 $ 28,571 $ 28,571 2 $ 13,571 $ 27,143 $ 72,857 2 $ 20,408 $ 48,980 3 $ 13,571 $ 40,714 $ 59,286 3 $ 14,577 $ 63,557 4 $ 13,571 $ 54,286 $ 45,714 4 $ 10,412 $ 73,969 5 $ 13,571 $ 67,857 $ 32,143 5 $ 7,437 $ 81,407 6 $ 13,571 $ 81,429 $ 18,571 6 $ 5,312 $ 86,719 7 $ 13,571 $ 95,000 $ 5,000 7 $ 3,795 $ 90,514 7 (Real) $ 8,281 $ 95,000 Notes: Adjustment made in year 7 to get to salvag Excel Method Double Declining Balance Depreciati Year 1 $ 28,571 $ 28,571 2 $ 20,408 $ 48,980 3 $ 14,577 $ 63,557 4 $ 10,412 $ 73,969 5 $ 7,437 $ 81,407 6 $ 5,312 $ 86,719 7 $ 3,795 $ 90,514 7 (Real) $ 8,281 $ 95,000 Problem 10 17th Edition Asset Cost $ 300,000 Salvage $ 30,000 Depr. Life 10 (see note under MACRS) Manual Method Straight Line Depreciation Method Double Declining Balance Depreciati Year Book Value Year 1 $ 27,000 $ 27,000 $ 273,000 1 $ 60,000 $ 60,000 Depreciation Expense Accumulated Depreciation Depreciation Expense Accumulated Depreciation Depreciation Expense Accumulated Depreciation Depreciation Expense Accumulated Depreciation Depreciation Expense Accumulated Depreciation
2 $ 27,000 $ 54,000 $ 246,000 2 $ 48,000 $ 108,000 3 $ 27,000 $ 81,000 $ 219,000 3 $ 38,400 $ 146,400 4 $ 27,000 $ 108,000 $ 192,000 4 $ 30,720 $ 177,120 5 $ 27,000 $ 135,000 $ 165,000 5 $ 24,576 $ 201,696 6 $ 27,000 $ 162,000 $ 138,000 6 $ 19,661 $ 221,357 7 $ 27,000 $ 189,000 $ 111,000 7 $ 15,729 $ 237,085 8 $ 27,000 $ 216,000 $ 84,000 8 $ 12,583 $ 249,668 9 $ 27,000 $ 243,000 $ 57,000 9 $ 10,066 $ 259,735 10 $ 27,000 $ 270,000 $ 30,000 10 $ 8,053 $ 267,788 10 (Real) $ 10,265 $ 270,000 Notes: Adjustment made in year 10 to arrive at sal Excel Method Double Declining Balance Depreciati Year 1 $ 60,000 $ 60,000 2 $ 48,000 $ 108,000 3 $ 38,400 $ 146,400 4 $ 30,720 $ 177,120 5 $ 24,576 $ 201,696 6 $ 19,661 $ 221,357 7 $ 15,729 $ 237,085 8 $ 12,583 $ 249,668 9 $ 10,066 $ 259,735 10 $ 8,053 $ 267,788 10 (Real) $ 10,265 $ 270,000 Depreciation Expense Accumulated Depreciation
ion Method MACRS Depreciation Method Book Value Year Factor Book Value $ 71,429 1 0.1429 $ 13,576 $ 13,576 $ 86,425 $ 51,020 2 0.2449 $ 23,266 $ 36,841 $ 63,159 $ 36,443 3 0.1749 $ 16,616 $ 53,457 $ 46,544 $ 26,031 4 0.1249 $ 11,866 $ 65,322 $ 34,678 $ 18,593 5 0.0893 $ 8,484 $ 73,806 $ 26,195 $ 13,281 6 0.0892 $ 8,474 $ 82,280 $ 17,721 $ 9,486 7 0.0893 $ 8,484 $ 90,763 $ 9,237 $ 5,000 8 0.0446 $ 4,237 $ 95,000 $ 5,000 ge value Notes: 7 year MACRS property classification (ref. pages 318 and 320 in the text) Year 8 is really a partial year's depreciation ion Method Book Value $ 71,429 $ 51,020 $ 36,443 $ 26,031 $ 18,593 $ 13,281 $ 9,486 $ 5,000 ion Method MACRS Depreciation Method Book Value Year Factor Book Value $ 240,000 1 0.1000 $ 27,000 $ 27,000 $ 273,000 Depreciation Expense Accumulated Depreciation Depreciation Expense Accumulated Depreciation
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$ 192,000 2 0.1800 $ 48,600 $ 75,600 $ 224,400 $ 153,600 3 0.1440 $ 38,880 $ 114,480 $ 185,520 $ 122,880 4 0.1152 $ 31,104 $ 145,584 $ 154,416 $ 98,304 5 0.0922 $ 24,894 $ 170,478 $ 129,522 $ 78,643 6 0.0737 $ 19,899 $ 190,377 $ 109,623 $ 62,915 7 0.0655 $ 17,685 $ 208,062 $ 91,938 $ 50,332 8 0.0655 $ 17,685 $ 225,747 $ 74,253 $ 40,265 9 0.0656 $ 17,712 $ 243,459 $ 56,541 $ 32,212 10 0.0655 $ 17,685 $ 261,144 $ 38,856 $ 30,000 11 0.0328 $ 8,856 $ 270,000 $ 30,000 Notes: lvage value 10 year MACRS property classification; ref. page 334 (17th) in the text Year 11is really a partial year's depreciation ion Method Book Value $ 240,000 $ 192,000 $ 153,600 $ 122,880 $ 98,304 $ 78,643 $ 62,915 $ 50,332 $ 40,265 $ 32,212 $ 30,000
Problem 15 16th and 17th Edition are the same Asset Cost $ 1,585,000 Salvage $ - No salvage give…..assume it's zero Depr. Life 7 (see note under MACRS) Manual Method Straight Line Depreciation Method Double Declining Balance Depreciati Year Book Value Year 1 $ 226,429 $ 226,429 $ 1,358,571 1 $ 452,857 $ 452,857 2 $ 226,429 $ 452,857 $ 1,132,143 2 $ 323,469 $ 776,327 3 $ 226,429 $ 679,286 $ 905,714 3 $ 231,050 $ 1,007,376 4 $ 226,429 $ 905,714 $ 679,286 4 $ 165,035 $ 1,172,411 5 $ 226,429 $ 1,132,143 $ 452,857 5 $ 117,882 $ 1,290,294 6 $ 226,429 $ 1,358,571 $ 226,429 6 $ 84,202 $ 1,374,496 7 $ 226,429 $ 1,585,000 $ - 7 $ 60,144 $ 1,434,640 7 (Real) $ 210,504 $ 1,585,000 Notes: Adjustment made in year 7 to get to salvag Excel Method Double Declining Balance Depreciati Year 1 $ 452,857 $ 452,857 2 $ 323,469 $ 776,327 3 $ 231,050 $ 1,007,376 4 $ 165,035 $ 1,172,411 5 $ 117,882 $ 1,290,294 6 $ 84,202 $ 1,374,496 7 $ 60,144 $ 1,434,640 7 (Real) $ 210,504 $ 1,585,000 Depreciation Expense Accumulated Depreciation Depreciation Expense Accumulated Depreciation Depreciation Expense Accumulated Depreciation
ion Method MACRS Depreciation Method Book Value Year Factor Book Value $ 1,132,143 1 0.1429 $ 226,497 $ 226,497 $ 1,358,504 $ 808,673 2 0.2449 $ 388,167 $ 614,663 $ 970,337 $ 577,624 3 0.1749 $ 277,217 $ 891,880 $ 693,121 $ 412,589 4 0.1249 $ 197,967 $ 1,089,846 $ 495,154 $ 294,706 5 0.0893 $ 141,541 $ 1,231,387 $ 353,614 $ 210,504 6 0.0892 $ 141,382 $ 1,372,769 $ 212,232 $ 150,360 7 0.0893 $ 141,541 $ 1,514,309 $ 70,691 $ - 8 0.0446 $ 70,691 $ 1,585,000 $ - ge value Notes: 7 year MACRS property classification; ref. page 320 (16th) and 334 (17th) in the Year 8 is really a partial year's depreciation ion Method Book Value $ 1,132,143 $ 808,673 $ 577,624 $ 412,589 $ 294,706 $ 210,504 $ 150,360 $ - Depreciation Expense Accumulated Depreciation
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Problem 57 16th and 17th Edition are the same Asset Cost $ 500,000 Salvage $ 20,000 Depr. Life 10 Manual Method Straight Line Depreciation Method Double Declining Balance Depreciation Method MACRS Depreciation Method Year Book Value Year Book Value Year Factor Book Value 1 $ 48,000 $ 48,000 $ 452,000 1 $ 100,000 $ 100,000 $ 400,000 1 10.00% $ 48,000 $ 48,000 $ 452,000 2 $ 48,000 $ 96,000 $ 404,000 2 $ 80,000 $ 180,000 $ 320,000 2 18.00% $ 86,400 $ 134,400 $ 365,600 3 $ 48,000 $ 144,000 $ 356,000 3 $ 64,000 $ 244,000 $ 256,000 3 14.40% $ 69,120 $ 203,520 $ 296,480 4 $ 48,000 $ 192,000 $ 308,000 4 $ 51,200 $ 295,200 $ 204,800 4 11.52% $ 55,296 $ 258,816 $ 241,184 5 $ 48,000 $ 240,000 $ 260,000 5 $ 40,960 $ 336,160 $ 163,840 5 9.22% $ 44,256 $ 303,072 $ 196,928 6 $ 48,000 $ 288,000 $ 212,000 6 $ 32,768 $ 368,928 $ 131,072 6 7.37% $ 35,376 $ 338,448 $ 161,552 7 $ 48,000 $ 336,000 $ 164,000 7 $ 26,214 $ 395,142 $ 104,858 7 6.55% $ 31,440 $ 369,888 $ 130,112 8 $ 48,000 $ 384,000 $ 116,000 8 $ 20,972 $ 416,114 $ 83,886 8 6.55% $ 31,440 $ 401,328 $ 98,672 9 $ 48,000 $ 432,000 $ 68,000 9 $ 16,777 $ 432,891 $ 67,109 9 6.56% $ 31,488 $ 432,816 $ 67,184 10 $ 48,000 $ 480,000 $ 20,000 10 $ 13,422 $ 446,313 $ 53,687 10 6.55% $ 31,440 $ 464,256 $ 35,744 10 (Real) $ 47,109 $ 480,000 $ 20,000 11 3.28% $ 15,744 $ 480,000 $ 20,000 Notes: Adjustment made in year 10 to arrive at salvage value Notes: 10 year MACRS property classification; ref. page 320 (16th) and 334 (17th) in the text Year 11 is really a partial year's depreciation Excel Method Double Declining Balance Depreciation Method Year Book Value 1 $ 100,000 $ 100,000 $ 400,000 2 $ 80,000 $ 180,000 $ 320,000 3 $ 64,000 $ 244,000 $ 256,000 4 $ 51,200 $ 295,200 $ 204,800 5 $ 40,960 $ 336,160 $ 163,840 6 $ 32,768 $ 368,928 $ 131,072 7 $ 26,214 $ 395,142 $ 104,858 8 $ 20,972 $ 416,114 $ 83,886 9 $ 16,777 $ 432,891 $ 67,109 10 $ 13,422 $ 446,313 $ 53,687 10 (Real) $ 47,109 $ 480,000 $ 20,000 Depreciation Expense Accumulated Depreciation Depreciation Expense Accumulated Depreciation Depreciation Expense Accumulated Depreciation Depreciation Expense Accumulated Depreciation

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First cost Book depreciation life MACRS property class Salvage value n C $11,429 $19,592 $13,994 $9,996 $7,140 $7,140 $7,140 $3,570 Which of the depreciation schedules uses the straight-line depreciation method? 2 3 4 5 6 7 8 U U U U A B A $8,000 $8,000 B $22,857 $16,327 $8,000 $8,000 $8,000 $8,000 $8,000 $0 $11,661 $5,154 $0 $0 $0 $80,000 $0 7 years 7 years $24,000 D $22,8 $16,3 $11,6 $8,33 $6,94 $6,94 $6,94 $0
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Create a units of production depreciation Cargo Van Price $26,000        Machine Price $48,000Salvage value $2,000             Salvage value $3,000Useful life 10 years                 Useful life 8 yearsTotal miles 90,000                  Total hours 13,000Yr 1 miles 12,100                   Yr 1 hours 1,250Yr 2 miles 9,400                     Yr 2 hours 1,46
Historical cost Estimated useful life Salvage value Estimated useful hours $ 270,000 6 уears $ 24,000 12,000 hours Estimated hours per year: 3,100 2019 1,100 2020 1,200 2021 2,800 2022 2,600 2023 1,200 2024 Required 1 Complete the depreciation schedule using the Straight-line Method. Page, Adventure Park, Corp. ciation Schedule - Straight Line Method Depreciation Accumulated Depreciable Year Expense Depreciation Cost 12.31.19 12.31.20 12.31.21 12.31.22 12.31.23 12.32.24 2 Record depreciation expense for 2020. General Journal DR CR 3 What is the net book value of the equipment on 12.31.20? Historical cost (Accumulated depreciation) Net book value at 12.31.20
Required information Exercise 8-9A (Algo) Computing and recording straight-line versus double-declining-balance depreciation LO 8-2, 8-3 [The following information applies to the questions displayed below.] At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $85,000. It is expected to have a five-year life and a $15,000 salvage value. Exercise 8-9A (Algo) Part a Required: a-1. Compute the depreciation, assuming that the company uses straight-line depreciation. a-2. Compute the depreciation for each of the five years, assuming that the company uses double-declining-balance depreciation. Complete this question by entering your answers in the tabs below. Req A1 Req A2 Compute the depreciation, assuming that the company uses straight-line depreciation. Straight-Line depreciation $ 85,000
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ook int ences Problem 6-28A (Algo) Revision of estimated useful life of tangible assets LO 6-6 Banger Company purchased delivery equipment for $45,000 on January 1, Year 1. Banger estimated that the delivery equipment would have a life of five years and a $3,000 salvage value. Banger uses the straight-line method to compute the depreciation expense. At the beginning of year 4, Banger revised the useful life of the delivery equipment to be a total of seven years. The estimated salvage value was not changed. Compute the depreciation expense for each of the seven years. Years Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Depreciation Expense $ $ $ 8,400 8,400 8,400
1 Check my work S Purchase price Delivery cost Installation charge Estimated life $ 55,800 $ 4,000 Estimated units Salvage estimate $ 2,000 5 years 142,000 $ 5,000 During Year 1, the machine produced 38,000 units, and during Year 2 it produced 40,000 units. Required: a. Determine the amount of depreciation expense for Year 1 and Year 2 using straight-line method. b. Determine the amount of depreciation expense for Year 1 and Year 2 using double-declining-balance method. c. Determine the amount of depreciation expense for Year 1 and Year 2 using units of production method. d. Determine the amount of depreciation expense for Year 1 and Year 2 using MACRS, assuming that the machine is classified as seven-year property. Note: Round your answers to the nearest dollar amount. MACRS table: Year 5-Year property,% 7-Year property,% 1 20.00 14.29 12345678 32.00 24.49 19.20 17.49 11.52 12.49 11.52 8.93 5.76 8.92 8.93 4.46
b Preview File Edit View ♥ Go mgt120h-a17.pdf Page 3 of 10 Tools Window Help b. $40,000 loss on disposal c. $40,000 gain on disposal d. $25,000 loss on disposal a. 20 years b. 6 years c. 3.33 years d. None of the above O D 7. The average cost of a company's property and equipment is $200,000, depreciation expense is $10,000 and accumulated depreciation is $60,000. The average useful life of the company's property and equipment is: Debenture Valuation V 77 Search (Cª Ơ 8. A company's average total assets is $200,000, depreciation expense is $10,000, and accumulated depreciation is $60,000. Net sales total $250,000. The asset turnover ratio is Cost-Volume-Profit Analysis The Effect Of Prepaid Taxes On Assets And Liabili... 90 Sat Apr 15 3:05 PM a. When an individual account is written off b. When the loss amount is known c. For an amount that the company estimates it will not collect d. Several times during the accounting period 6 A company sells an asset that originally cost $150,000…
Knowledge Check 01 A company purchases a machine for $10,000. The estimated residual value is $4,000, and the estimated service life is 4 years or 10,000 units. The company uses the straight-line method of depreciation. The depreciable cost of the asset is: Multiple Choice O $1,000 $1,500 $6,000 $10,000
Question Content Area Computer equipment was acquired at the beginning of the year at a cost of $85,000 that has an estimated residual value of $5,000 and an estimated useful life of 8 years. What is the annual straight-line depreciation for the equipment? a. $11, 250 b. $21, 250 c. $10,625 d. $10,000
Connect: Cha... 6 Table 9.7 Modified ACRS depreciation allowances Saved Help Save & Exit Submit Property Class Year 3-Year 5-Year 7-Year Check my work 1 33.33% 20.00% 14.29% 2 44.45 32.00 24.49 3 14.81 19.20 17.49 4 7.41 11.52 12.49 An asset used in a four-year project falls in the five-year MACRS class (MACRS schedule) for tax purposes. The asset has an acquisition cost of $7,200,000 and will be sold for $1,620,000 at the end of the project. If the tax rate is 24 percent, what is the aftertax salvage value of the asset? Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. 7 5 11.52 8.93 6 5.76 8.92 8.93 8 4.46 Aftertax salvage value
Problem 5 - Property Plant and Equipment Requirements:  Calculate the (A) Cost Basis, (B) Straight line, and (C) Activity Method for Depreciation                       Purchase of a Truck           Given  cost base Price of  $        110,000       Tax and delivery    $           10,000       Salvage Value    $           20,000       Asset Life   5 years                   Estimated Mileage Traveled per year       Yr 1                50,000       Yr 2                40,000       Yr 3                35,000       Yr 4                40,000       Yr 5                45,000                       210,000 Miles     (A)  Cost Basis       Calculations:               (B)  Straight Line Method                 Yr 1       Yr 2       Yr 3       Yr 4       Yr 5                 Calculations:                                             (C) Activity Method                 Yr 1       Yr 2       Yr 3       Yr 4       Yr 5…
Calculate depreciation for year 2 based on the following information: Historical cost $40,000 Useful life 5 years Salvage value $3,000 Year 1 depreciation $7,400 a. $7,000 b. $7,400 c. $8,000 d. $8,600
ignment Required information Exercise 8-9A (Algo) Computing and recording straight-line versus double-declining-balance depreciation LO 8-2, 8-3 [The following information applies to the questions displayed below.] Exercise 8-9A (Algo) Part a F1 At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $180,000. It is expected to have a five-year life and a $30,000 salvage value. Required: a-1. Compute the depreciation, assuming that the company uses straight-line depreciation. a-2. Compute the depreciation for each of the five years, assuming that the company uses double-declining-balance depreciation. Complete this question by entering your answers in the tabs below. Req A1 Year 1 Year 2 Compute the depreciation for each of the five years, assuming that the company uses double-declining-balance depreciation. Note: Leave no cells blank - be certain to enter "0" wherever required. Depreciation Expense Year 3 Year 4 Year 5 (@ 2 dx Req A2 F2 50° J # 3 F3 $ 4 पं…
Asset Cost SalvageValue Units ofUseful Life Depreciationper Unit ($) Automobile $27,500 $3,500 40,000 miles $  what is the depreciation
! Required information Exercise 8-9A (Algo) Computing and recording straight-line versus double-declining-balance depreciation LO 8-2, 8-3 [The following information applies to the questions displayed below.] At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $85,000. It is expected to have a five-year life and a $15,000 salvage value. Exercise 8-9A (Algo) Part a Required: a-1. Compute the depreciation, assuming that the company uses straight-line depreciation. a-2. Compute the depreciation for each of the five years, assuming that the company uses double-declining-balance depreciation. Complete this question by entering your answers in the tabs below. Req A1 Compute the depreciation for each of the five years, assuming that the company uses double-declining-balance depreciation. Note: Leave no cells blank - be certain to enter "0" wherever required. Year 1 Year 2 Req A2 Year 3 Year 4 Year 5 Depreciation Expense
MetaExercise 8 - 9A (Algo) Computing and recording straight-line versus double-declining - balance depreciation LO 8-2, 8-3 Skip to question [The following information applies to the questions displayed below.] At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $280,000. It is expected to have a five-year life and a $ 40,000 salvage value. Exercise 8-9A (Algo) Part c c. Prepare the journal entries to recognize depreciation for each of the five years, assuming that the company uses: (2) Double - declining - balance depreciation.
Depreciation expense
Saved Help Save & EX Assignment O Check Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] On April 1, Cyclone Company purchases a trencher for $314,000. The machine is expected to last five years and have a salvage value of $57,000. Exercise 8-12 (Algo) Double-declining-balance, partial-year depreciation LO C2 55 Compute depreciation expense at December 31 for both the first year and second year assuming the company uses the double- declining-balance method. (Enter all amounts as positive values.) Depreciation for the Period End of Period Annual Period Beginning of Depreciation Period Book Partial Year Depreciation Accumulated Expense Book Value Rate Depreciation Value nces Year 1 Year 2 ere to search 77°F A a hp 40 144 41 20 prt sc delete 1 & 5 8. R. Y. H. pause
Exercise 6-15 (Algo) Depreciation calculation methods LO 6-3 Millco Incorporated acquired a machine that cost $408,000 early in 2022. The machine is expected to last for eight years, and its estimated salvage value at the end of its life is $62,000. Required: a. Using straight-line depreciation, calculate the depreciation expense to be recognized in the first year of the machine's life and calculate the accumulated depreciation after the fifth year of the machine's life. b. Using declining-balance depreciation at twice the straight-line rate, calculate the depreciation expense for the third year of the machine's life. c. What will be the net book value of the machine at the end of its eight year of use before it is disposed of, under each depreciation method? Complete this question by entering your answers in the tabs below. Req A to B Req C a. Using straight-line depreciation, calculate the depreciation expense to be recognized in the first year of the machine's life and calculate the…
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Purchase price: $70,000 Purchase price: Value:$10.000 Purchase price: $30,000 Salvage value: $5,000 Year 4 production: 5,000 units Year 1 Production Actual Year 2 Production Estimated Year 3 Production Estimated Year 4 Production Estimated 25,000 50,000 75,000 100,000 125.000 Total Units to be Produced Estimated Useful Life of Purchase Price & Estimated Salvage Assets Value 20 Building Equipment Truck $70,000 16 $60,000 $50,000 12 $40,000 $30,000 $20,000 $10,000 $0 Purchase Salvage Purchase Salvage Purchase Salvage Building Equipment Truck Price Value Price Value Price Value Actual & Estimated Units-of-Production Year 1 production: 35.000 units Year 1 Production Year 2 Production Estimated 000 production: 25,000 units Year 3 Year 3 Production Estimated * +ableau
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