On march 31, 2018, Canseco plumbing Fixtures purchased equipment for $32,000. Residual worth at the finish of an estimated four-year service life is meant to be $8,000. The company expects the an equipment to run for 20,000 hours.
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a. calculation depreciation price for 2018 and 2019 using directly line method. b. calculate depreciation price for 2018 and 2019 making use of sum-of-the-yearsâ-digits method. c. calculate depreciation cost for 2018 and 2019 utilizing double-declining balance method.
A.
Calculate depreciation cost for 2018 and 2019 using straight line method.
| Straight-Line Depreciation | |||||
| Choose Numerator: | / | select Denominator: | = | annual Depreciation | |
| ? | / | ? | = | Annual Depreciation | |
| ? | / | ? | = | ? | |
| Year | annual Depreciation | x | portion of Year | = | Depreciation Expense |
| 2018 | x | ? | = | ? | |
| 2019 | x | ? | = | ? |
B. calculate depreciation cost for 2018 and also 2019 making use of sum-of-the-yearsâ-digits method.
C. calculation depreciation expense for 2018 and 2019 using double-declining balance method.
| Depreciation for the Period | finish of Period | |||||
| yearly Period | beginning of period Book Value | Depreciation Rate | portion of Year | Depreciation Expense | accumulated Depreciation | publication Value |
| 2016 | ? | ? | ? | ? | ||
| 2017 | ? | ? | ? | ? |
Monteâs Coffee company purchased packaging tools on January5, 2014, for $90,000. The equipment was supposed to have actually a usefullife of 3 years, or 20,000 operating hours, and a residualvalue that $6,000. The equipment was provided for 8,900 hours during2014, 7,100 hours in 2015, and 4,000 hrs in 2016.
| Required: | |
| 1. | Determine the lot ofdepreciation expense for the years ended December 31, 2014, 2015,and 2016 by (a) the straight-line method, (b) the units-of-outputmethod, and (c) the double-declining-balance method. Additionally determinethe total depreciation expense for the 3 years by every method.(Note: For decreasing BALANCE ONLY, round theanswer for each year to the nearest entirety dollar.) |
| 2. | What method yields the highestdepreciation cost for 2014? |
| 3. | What an approach yields the mostdepreciation over the three-year life that the equipment? |
X
Depreciation Expense
1. Recognize the quantity of depreciation expense for the yearsended December 31, 2014, 2015, and 2016 by (a) the straight-linemethod, (b) the units-of-output method, and also (c) thedouble-declining-balance method. Also determine the totaldepreciation cost for the 3 years by every method.
Score: 0/45
Depreciation Expense |
1 | Year | Straight-Line Method | Units-of-Output Method | Double-Declining-Balance Method |
2 | 2014 | |||
3 | 2015 | |||
4 | 2016 | |||
5 | Total |
Points:
0 / 12
Feedback
Check mine Work
Asset cost minus residual value equates to depreciable cost. Amount theyearly depreciation to determine complete depreciation.
Annual units-of-production depreciation allocates the cost ofthe asset equally over the units developed (hours).
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The double-declining price is 2 times the straight-line rate.Book worth is the asset price minus gathered depreciation. In thefirst year, the balance in the collected depreciation account iszero.