b. Double-declining-balance (round to two decimal places) Double-Declining-Balance Method Ending Year Depreciation Book Value Annual 1 $1 2 4 7 8. c. Sum-of-the-years'-digits (round to two decimal places) Sum-Of-The-Years'-Digits Method Ending Year Depreciation Book Value Annual 1. 7 8 2. Assuming a seven-year class of property, compute MACRS depreciation expense for each year of the asse 3.
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- When depreciation is recorded each period, what account is debited? a. Depreciation Expense b. Cash c. Accumulated Depreciation d. The fixed asset account involved Use the following information for Multiple-Choice Questions 7-4 through 7-6: Cox Inc. acquired a machine for on January 1, 2019. The machine has a salvage value of $20,000 and a 5-year useful life. Cox expects the machine to run for 15,000 machine hours. The machine was actually used for 4,200 hours in 2019 and 3,450 hours in 2020.IMPACT OF IMPROVEMENTS AND REPLACEMENTS ON THE CALCULATION OF DEPRECIATION On January 1, 20-1, Dans Demolition purchased two jackhammers for 2,500 each with a salvage value of 100 each and estimated useful lives of four years. On January 1, 20-2, a stronger blade to improve performance was installed in Jackhammer A for 800 cash and the compressor was replaced in Jackhammer B for 200 cash. The compressor is expected to extend the life of Jackhammer B one year beyond the original estimate. REQUIRED 1. Using the straight-line method, prepare general journal entries for depreciation on December 31, 20-1, for Jackhammers A and B. 2. Enter the transactions for January 20-2 in a general journal. 3. Assuming no other additions, improvements, or replacements, calculate the depreciation expense for each jackhammer for 20-2 through 20-4.Colquhoun International purchases a warehouse for $300,000. The best estimate of the salvage value at the time of purchase was $15,000, and it is expected to be used for twenty-five years. Colquhoun uses the straight-line depreciation method for all warehouse buildings. After four years of recording depreciation, Colquhoun determines that the warehouse will be useful for only another fifteen years. Calculate annual depreciation expense for the first four years. Determine the depreciation expense for the final fifteen years of the assets life, and create the journal entry for year five.
- Straight-Line, Declining-Balance, Sum-Of-The-Years'-Digits, and MACRS Methods A machine is purchased January 1 at a cost of $59,000. It is expected to serve for eight years and have a salvage value of $3,000. Required: 1. Prepare a schedule showing depreciation for each of the eight years and the book value at the end of each year using the following methods: a. Straight-line Straight-Line Method Annual Ending Year Depreciation Book Value 1 3 4 5 6 7 8 b. Double-declining-balance (round to two decimal places) Double-Declining-Balance Method Ending Depreciation Book Value Annual Year 2 3 4. 7 8 c. Sum-of-the-years'-digits (round to two decimal places) Sum-Of-The-Years'-Digits Method Annual Ending Year Depreciation Book Value 4 5 6.Straight-Line, Declining-Balance, Sum-Of-The-Years'-Digits, and MACRS Methods A machine is purchased January 1 at a cost of $59,000. It is expected to serve for eight years and have a salvage value of $3,000. Required: 1. Prepare a schedule showing depreciation for each year and the book value at the end of each year using the following methods a. Straight-lineStraight-Line, Declining-Balance, Sum-Of-The-Years'-Digits, and MACRS Methods A machine is purchased January 1 at a cost of $70,800. It is expected to serve for eight years and have a salvage value of $2,800. Required: 1. Prepare a schedule showing depreciation for each of the eight years and the book value at the end of each year using the following methods: a. Straight-line b. Double-declining-balance (round to two decimal places) c. Sum-of-the-years'-digits (round to two decimal places) 2. Assuming a seven-year class of property, compute MACRS depreciation expense for each year of the asset’s life.
- A piece of equipment is purchased for $40,000 and has an estimated salvage value of $1,000 at the end of the recovery period. Prepare a depreciation schedule for the piece of equipment using the straight-line method, the sum-of-the-years method, and the 200% declining-balance method with a recovery period of five years. Compare these depreciation methods in a graph.Required information [The following information applies to the questions displayed below.] On April 1, Cyclone Company purchases a trencher for $320,000. The machine is expected to last five years and have a salvage value of $60,000. Compute depreciation expense at December 31 for both the first year and second year assuming the company uses the straight-line method. Choose Numerator: Choose Denominator: Annual Depreciation Fraction of Year Depreciation Expense Year First year Second year Annual Depreciation X = Annual depreciationCalculate depreciation. A machine cost $165,000 on April 28, 2021. Its estimated salvage value is $5,000 and its expected life is eight years. Instructions Prepare a depreciation schedule for each year using each of the following methods, showing the figures used. These schedules should have formulas in the cells referencing the "input section" that was discussed previously. (a) Straight-line (b) Double-declining-balance (c) Sum-of-the-years'-digits
- Required information [The following information applies to the questions displayed below.] On April 1, Cyclone Company purchases a trencher for $290,000. The machine is expected to last five years and have a salvage value of $45,000. Compute depreciation expense at December 31 for both the first year and second year assuming the company uses the straight-line method. Choose Numerator: Year First year Second year Annual Depreciation Choose Denominator: Fraction of Year Annual Depreciation = Annual depreciation = Depreciation Expense 0Required information [The following information applies to the questions displayed below.] On April 1, Cyclone Company purchases a trencher for $294,000. The machine is expected to last five years and have a salvage value of $47,000. Compute depreciation expense at December 31 for both the first year and second year assuming the company uses the straight-line method. Choose Numerator: Year First year Second year Annual Depreciation x Choose Denominator: Fraction of Year 11 11 11 11 11 Annual Depreciation Annual depreciation Depreciation ExpenseSuppose a $10,000 machine will be used for five years. At that time, the machine's salvage value will be $2,000. It was placed in service January 1st of year 1. Please complete the following using the double-declining balance (DDB) method: (1) A full annual depreciation schedule for the useful life of the asset. (2) The journal entry to record the acquisition of the machine. (3) The journal entry to record the first month of depreciation on the machine.