Calculation Depreciation Rate 40 40 40 % % % 40 % # of Months 6/12 12/12 12/12 12/12 +A Depreciation Expense 18250 29200 17520 10512 Accumulated Depreciation End of Year 18250 32368 48552 64736 80920 Carrying Amount 73000 43800 26280 15768
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- 10/23/22, 3:12 AM Year 3-Year 1 33.33% 2 3 4 5 6 7 8 9012345673222 11 18 44.45 14.81 7.41 Depreciation rate for recovery period 7-Year 14.29% 5-Year 20.00% 32.00 19.20 11.52 11.52 5.76 24.49 17.49 12.49 8.93 8.92 8.93 4.46 10-Year 15-Year 10.00% 5.00% 9.50 8.55 7.70 6.93 6.23 18.00 14.40 11.52 9.22 7.37 6.55 6.55 6.56 6.55 3.28 5.90 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 2.95 MACRS Table " 20-Year 3.750% 7.219 6.677 6.177 5.713 5.285 4.888 4.522 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 2.231You have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose truck for $60,000. The truck falls into the MACRS 3-year class, is not eligible for either bonus depreciation or Section 179 expensing, and it will be sold after three years for $20,000. Use of the truck will require an increase in NWC (spare parts inventory) of $2,000. The truck will have no effect on revenues, but it is expected to save the firm $20,000 per year in before-tax operating costs, mainly labor. The firm's marginal tax rate is 21 percent. ts What will the cash flows for this project be? (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.) Print Year 1 2 ferences FCFPR 9-3A Depreciation By Three Methods; Partial Years Obj. 2 Perdue Company purchased equipment on April 1 for $270,000. The equipment was expected to have a useful life of three years or 18,000 operating EXCEL TEMPLATE hours, and a residual value of $9,000. The equipment was used for 7,500 hours during Year 1, 5,500 hours in Year 2, 4,000 hours in Year 3, and 1,000 hours in Year 4. Instructions Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. WOGOO étv MacBook Air
- Pharoah Limited purchased a machine on account on April 1, 2024, at an invoice price of $356,620. On April 2, it paid $2,130 for delivery of the machine. A one-year, $3,970 insurance policy on the machine was purchased on April 5. On April 19, Pharoah paid $7,590 for installation and testing of the machine. The machine was ready for use on April 30. Pharoah estimates the machine's useful life will be five years or 6,212 units with a residual value of $73,690. Assume the machine produces the following numbers of units each year: 896 units in 2024; 1,400 units in 2025; 1,405 units in 2026; 1,396 units in 2027; and 1,115 units in 2028. Pharoah has a December 31 year end. - Show Transcribed Text Your answer is partially correct. Ű Ć Assume that the company, after recording depreciation using the straight-line method, for the first four months of 2026, determined on May 1, 2026 that the machine could be operated for one more year than originally estimated. Because of this, the residual…3. Question 20 Year dt-DBB dt-SL BV 400 133.33 63.33 266.67 88.89 49.33 177.78 3. 59.26 39.44 118.52 4 39.51 32.84 79.01 26.34 29.51 49.51 16.50 29.51 20.00 Above is a 6-year depreciation schedule using DDB depreciation with conversion to SL. The year in which the conversion to SL occurred is most nearly: O Year 3 Year 4 Year 5 O Year 6Crane Company purchased equipment on March 31, 2021, at a cost of $228,000 Management is considering the merits of using the diminishing balance or units-of-production method of depreciation instead of the straight-line method, which it currently uses for other equipment. The new equipment has an estimated residual value of $4,000 and an estimated useful life of either four years or 80,000 units Demand for the products produced by the equipment is sporadic so the equipment will be used more in some years than in others. Assume the equipment produces the following number of units each year: 14,200 units in 2021:20.200 units in 2022 20,600 units in 2023, 20,000 units in 2024; and 5,000 units in 2025. Crane has a December 31 year end (a) Your answer is partially correct Prepare separate depreciation schedules for the life of the equipment using (Round depreciation per unit to 2 decimal places, es 5.28 and final answers to O decimal places, eg 5.275) Straight line method Year 2021 S 2022…
- initial book value $ n residual value $ years years 1 $ 2 $ 3 $ 4 $ 5 $ 6 $ 7 $ 8 $ 9 $ 10 $ 11 $ 12 $ annual depreciation cumulative depreciation BV 1 $ 2 $ 3 $ 4 $ 5 $ 6 $ 7 $ 8 $ 3,000,000 9 $ 10 $ 12 11 $ 12 $ 16.67% annual depreciation cumulative depreciation BV 500,000.00 $ 416,666.67 $ 347,222.22 $ 289,351.85 $ 241,126.54 $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ 2,750,000 500,000 $ 2,500,000 750,000 $ 2,250,000 1,000,000 $ 2,000,000 1,250,000 $ 1,750,000 1,500,000 1,250,000 1,000,000 750,000 500,000 250,000 1,500,000 $ 1,750,000 $ 2,000,000 $ 2,250,000 $ 2,500,000 $ 2,750,000 $ 3,000,000 $ 200,938.79 $ 167,448.99 $ 139,540.82 $ 116,284.02 $ 96,903.35 $ 80,752.79 $ 67,293.99 $ - 500,000.00 $2,500,000.00 916,666.67 $2,083,333.33 1,263,888.89 $1,736,111.11 1,553,240.74 $1,446,759.26 1,794,367.28 $ 1,205,632.72 1,995,306.07 $1,004,693.93 2,162,755.06 $ 837,244.94 2,302,295.88 $ 697,704.12…EXERCISE 9.6 Revision of Depreciation Estimates e LO9-3 Swindall Industries uses straight-line depreciation on all of its depreciable assets. The company records annual depreciation expense at the end of each calendar year. On January 11, 2017, the company purchased a machine costing $90,000. The machine's useful life was estimated to be 12 years with an estimated residual value of $18,00o. Depreciation for partial years is recorded to the nearest full month. In 2021, after almost five years of experience with the machine, management decided to revise its estimated life from 12 years to 20 years. No change was made in the estimated residual value. The revised estimate of the useful life was decided prior to recording annual depreciation expense for the year ended December 31, 2021. a. Prepare journal entries in chronological order for the given events, beginning with the purchase of the machinery on January 11, 2017. Show separately the recording of depreciation expense in 2017 through…S QS 8-6 (Algo) Double-declining-balance method LO P1 A building is acquired on January 1 at a cost of $910,000 with an estimated useful life of eight years and salvage value of $81,900. Compute depreciation expense for the first three years using the double-declining-balance method. (Round your answers to the nearest dollar.) aw 11 Annual Period First Year Second Year Third Year Depreciation for the Period Depreciation Rate (%) Beginning of Period Book Value Depreciation Expense
- 1 ances QS 10-6 (Algo) Double-declining-balance method LO P1 A building is acquired on January 1 at a cost of $970,000 with an estimated useful life of eight years and salvage value of $87,300. Compute depreciation expense for the first three years using the double-declining-balance method. Note: Round your answers to the nearest dollar. Annual Period First Year Second Year Third Year Depreciation for the Period Beginning of Perlod Book Value 070,000 Depreciation Depreciation Rate (%) Expense End of Period Accumulated Depreciation Book ValueTable 1 Depreciation Rate for Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year Year 1 33.33% 20.00% 14.29% 10.00% 5.00% 3.750% Year 2 44.45 32.00 24.49 18.00 9.50 7.219 Year 3 14.81 19.20 17.49 14.40 8.55 6.677 Year 4 7.41 11.52 12.49 11.52 7.70 6.177 Year 5 11.52 8.93 9.22 6.93 5.713 Year 6 5.76 8.92 7.37 6.23 5.285 Year 7 8.93 6.55 5.90 4.888 Year 8 4.46 6.55 5.90 4.522 Year 9 6.56 5.91 4.462 Year 10 6.55 5.90 4.461 Year 11 3.28 5.91 4.462 Year 12 5.90 4.461 Year 13 5.91 4.462 Year 14 5.90 4.461 Year 15 5.91 4.462 Year 16 2.95 4.461 Year 17 4.462 Year 18 4.461 Year 19 4.462 Year 20 4.461 Year 21 2.231 Table 3 Month Property Placed in Service Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Year 1…How much is the yearly depreciation using the straight line method A 950,400 B 936,000 C 860,400 D 846,000 Using the sum years of digits method, how much is the depreciation for the first year? A 1,560.000 B 1,584.000 C 1,410.000 D 1,434.000