Exercise 11-3 (Aigo) Depreciation methods; partial periods [LUT1-2] The following information applies to the questions displayed below.] On October 1, 2024, the Allegheny Corporation purchased equipment for $233,000. The estimated service life of the equipment is 10 years and the estimated residual value is $2,000. The equipment is expected to produce 420,000 units during its life. Required: Calculate depreciation for 2024 and 2025 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service. xercise 11-3 (Algo) Part 2 Double-declining-balance. Formula Beginning Book Value Double-Declining-Balance Method xDouble the Straight-line Rate X Fraction of Year = Depreciation Expense Amount for 2024 $ 233,000 x 20 % X 3/12 T $ 11,650 Amount for 2025 20 % x 12/12 =
Exercise 11-3 (Aigo) Depreciation methods; partial periods [LUT1-2] The following information applies to the questions displayed below.] On October 1, 2024, the Allegheny Corporation purchased equipment for $233,000. The estimated service life of the equipment is 10 years and the estimated residual value is $2,000. The equipment is expected to produce 420,000 units during its life. Required: Calculate depreciation for 2024 and 2025 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service. xercise 11-3 (Algo) Part 2 Double-declining-balance. Formula Beginning Book Value Double-Declining-Balance Method xDouble the Straight-line Rate X Fraction of Year = Depreciation Expense Amount for 2024 $ 233,000 x 20 % X 3/12 T $ 11,650 Amount for 2025 20 % x 12/12 =
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 2E: Depreciation Methods Sorter Company purchased equipment for 200,000 on January 2, 2019. The...
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![Exercise 11-3 (Aigo) Depreciation methods; partial periods [LUT1-2]
The following information applies to the questions displayed below.]
On October 1, 2024, the Allegheny Corporation purchased equipment for $233,000. The estimated service life of the
equipment is 10 years and the estimated residual value is $2,000. The equipment is expected to produce 420,000 units
during its life.
Required:
Calculate depreciation for 2024 and 2025 using each of the following methods. Partial-year depreciation is calculated
based on the number of months the asset is in service.
Exercise 11-3 (Algo) Part 2
2. Double-declining-balance.
Depreciation Expense
=
$
11,650
Formula
Beginning Book Value
Double-Declining-Balance Method
xDouble the Straight-line Rate
X
Fraction of Year
=
Amount for 2024
$
233,000
x
20 %
x
3/12
Amount for 2025
X
20 %
*
12/12
=](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6e2bb2b9-4fdd-4fff-8ec4-84c609d268f0%2Fc752068e-13e4-45aa-a73c-58a07579dcd8%2Fdnm5hvc_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 11-3 (Aigo) Depreciation methods; partial periods [LUT1-2]
The following information applies to the questions displayed below.]
On October 1, 2024, the Allegheny Corporation purchased equipment for $233,000. The estimated service life of the
equipment is 10 years and the estimated residual value is $2,000. The equipment is expected to produce 420,000 units
during its life.
Required:
Calculate depreciation for 2024 and 2025 using each of the following methods. Partial-year depreciation is calculated
based on the number of months the asset is in service.
Exercise 11-3 (Algo) Part 2
2. Double-declining-balance.
Depreciation Expense
=
$
11,650
Formula
Beginning Book Value
Double-Declining-Balance Method
xDouble the Straight-line Rate
X
Fraction of Year
=
Amount for 2024
$
233,000
x
20 %
x
3/12
Amount for 2025
X
20 %
*
12/12
=
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