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Can you tell me why this keeps saying that the answer is incomplete? I’ve already depreciated the asset down to its residual value.
Transcribed Image Text:Problem 7-5B Part 2
2. Prepare a depreciation schedule for four years using the double-declining-balance metho
only two years.) (Do not round your intermediate calculations.)
CHEETAH COPY
Depreciation Schedule-Double-Declining-Balance
End of Year Amounts
Depreciation
Expense
Accumulated
Year
Book Value
Depreciation
1
2$
50,000
2$
50,000
2$
50,000
2
25,000
75,000
25,000
4
Total
2$
75,000
![Required information
Problem 7-5B Determine depreciation under three methods (LO7-4)
[The following information applies to the questions displayed below.]
Cheetah Copy purchased a new copy machine. The new machine cost $100,000 including installation. The company
estimates the equipment will have a residual value of $25,000. Cheetah Copy also estimates it will use the machine for
four years or about 8,000 total hours. Actual use per year was as follows:
Year
Hours Used
1
3,000
2,000
1,200
2,800
3
Problem 7-5B Part 2
2. Prepare a depreciation schedule for four years using the double-declining-balance method. (Hint: The asset will be depreciated in
only two years.) (Do not round your intermediate calculations.)
CHEETAH COPY
Depreciation Schedule-Double-Declining-Balance
End of Year Amounts
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FEB
24
30](https://content.bartleby.com/qna-images/question/5f440a4a-a87c-43e8-9c30-e4890b6a6760/7c1fc7a5-41b4-4e5e-b538-2164bccf3974/2t7qxre_processed.jpeg)
Transcribed Image Text:Required information
Problem 7-5B Determine depreciation under three methods (LO7-4)
[The following information applies to the questions displayed below.]
Cheetah Copy purchased a new copy machine. The new machine cost $100,000 including installation. The company
estimates the equipment will have a residual value of $25,000. Cheetah Copy also estimates it will use the machine for
four years or about 8,000 total hours. Actual use per year was as follows:
Year
Hours Used
1
3,000
2,000
1,200
2,800
3
Problem 7-5B Part 2
2. Prepare a depreciation schedule for four years using the double-declining-balance method. (Hint: The asset will be depreciated in
only two years.) (Do not round your intermediate calculations.)
CHEETAH COPY
Depreciation Schedule-Double-Declining-Balance
End of Year Amounts
< Prev
Next >
of 8
FEB
24
30
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- Define and discuss survivorship bias and selection bias, and how they affect reported returns of illiquid assets.arrow_forwardWhy must we have an entry to remove fully depreciated fixed assets (no salvage value) from the books if there is no profit or loss on the disposal?arrow_forwardDo the fixed assets lose their value even though they continue to function and contribute to the engineering projects? Explain how?arrow_forward
- The key difference between amortization and depreciation is that amortization charges off the cost of an intangible asset, while depreciation does so for a tangible asset. True Falsearrow_forwardWhat are the requirements of depreciating an asset?arrow_forwardLand is not an asset we depreciate. Explain what it is not treated as an asset we depreciate?arrow_forward
- Discussionarrow_forwardFixed assets have their expenses spread out over time with depreciation. Why aren't they fully expensed at the time they are purchased?arrow_forward1. What are the three main factors used in determining depreciation of a fixed asset? 2. What is the double-declining balance method and what are the benefits of it?arrow_forward
- Why is the cost of certain kinds of property not recoverable at all by way of depreciation, depletion, or amortization deductions? In addition to answering that question, give three examples of the kinds of assets that are not subject to “cost recovery”.arrow_forwardDescribe the Costs of Defending Intangible Rights.arrow_forwardWhen do the depreciation expenses lose some of their value? Why?arrow_forward
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