Depreciation by Two Methods; Sale of Fixed Asset New lithographic equipment, acquired at a cost of $687,500 on March 1 of Year 1 (beginning of the fiscal year), has an estimated useful life of five years and an estimated residual value of $59,100. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. On March 4 of Year 5, the equipment was sold for $100,700. Required: 1.  Determine the annual depreciation expense for each of the estimated five years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by the following methods: a.  Straight-line method Year Depreciation Expense Accumulated Depreciation, End of Year Book Value, End of Year 1 $fill in the blank 02308c0c0011fb2_1 $fill in the blank 02308c0c0011fb2_2 $fill in the blank 02308c0c0011fb2_3 2 $fill in the blank 02308c0c0011fb2_4 $fill in the blank 02308c0c0011fb2_5 $fill in the blank 02308c0c0011fb2_6 3 $fill in the blank 02308c0c0011fb2_7 $fill in the blank 02308c0c0011fb2_8 $fill in the blank 02308c0c0011fb2_9 4 $fill in the blank 02308c0c0011fb2_10 $fill in the blank 02308c0c0011fb2_11 $fill in the blank 02308c0c0011fb2_12 5 $fill in the blank 02308c0c0011fb2_13 $fill in the blank 02308c0c0011fb2_14 $fill in the blank 02308c0c0011fb2_15 b.  Double-declining-balance method   Year Depreciation Expense Accumulated Depreciation, End of Year Book Value, End of Year 1 $fill in the blank 02308c0c0011fb2_16 $fill in the blank 02308c0c0011fb2_17 $fill in the blank 02308c0c0011fb2_18 2 $fill in the blank 02308c0c0011fb2_19 $fill in the blank 02308c0c0011fb2_20 $fill in the blank 02308c0c0011fb2_21 3 $fill in the blank 02308c0c0011fb2_22 $fill in the blank 02308c0c0011fb2_23 $fill in the blank 02308c0c0011fb2_24 4 $fill in the blank 02308c0c0011fb2_25 $fill in the blank 02308c0c0011fb2_26 $fill in the blank 02308c0c0011fb2_27 5 $fill in the blank 02308c0c0011fb2_28 $fill in the blank 02308c0c0011fb2_29 $fill in the blank 02308c0c0011fb2_30 2.  Journalize the entry to record the sale assuming that the manager chose the double declining-balance method. If an amount box does not require an entry, leave it blank.     fill in the blank 7a487df90069fec_2 fill in the blank 7a487df90069fec_3     fill in the blank 7a487df90069fec_5 fill in the blank 7a487df90069fec_6     fill in the blank 7a487df90069fec_8 fill in the blank 7a487df90069fec_9     fill in the blank 7a487df90069fec_11 fill in the blank 7a487df90069fec_12 3.  Journalize the entry to record the sale in (2) assuming that the equipment was sold for $86,400 instead of $100,700. If an amount box does not require an entry, leave it blank.     fill in the blank ceab2102a03dfa3_2 fill in the blank ceab2102a03dfa3_3     fill in the blank ceab2102a03dfa3_5 fill in the blank ceab2102a03dfa3_6     fill in the blank ceab2102a03dfa3_8 fill in the blank ceab2102a03dfa3_9     fill in the blank ceab2102a03dfa3_11 fill in the blank ceab2102a03dfa3_12

Disposal of fixed asset Equipment acquired on January 6 at a cost of $386,400 has an estimated useful life of 10 years and an estimated residual value of $50,400. a. What was the annual amount of depreciation for Years 1-3 using the straight-line method of depreciation? Year Depreciation Expense Year 1 Year 2 Year 3 b. What was the book value of the equipment on January 1 of Year 4? c. Assuming that the equipment was sold on January 3 of Year 4 for $271,300, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. January 3 d. Assuming that the equipment had been sold on January 3 of Year 4 for $291,300 instead of $271,300, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. January 3

Depreciation by Three Methods; Partial Years Layton Company purchased tool sharpening equipment on October 1 for $37,800. The equipment was expected to have a useful life of three years or 4,320 operating hours, and a residual value of $1,080. The equipment was used for 800 hours during Year 1, 1,500 hours in Year 2, 1,300 hours in Year 3, and 720 hours in Year 4. Required: 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. Note: FOR DECLINING BALANCE ONLY, round the multiplier to four decimal places. Then round the answer for each year to the nearest whole dollar. a.  Straight-line method Year Amount Year 1 $fill in the blank 1 Year 2 $fill in the blank 2 Year 3 $fill in the blank 3 Year 4 $fill in the blank 4 b.  Units-of-activity method Year Amount Year 1 $fill in the blank 5 Year 2 $fill…

Depreciation by Two Methods; Sale of Fixed Asset New lithographic equipment, acquired at a cost of $562,500 on March 1 of Year 1 (beginning of the fiscal year), has an estimated useful life of five years and an estimated residual value of $48,400. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. On March 4 of Year 5, the equipment was sold for $82,400. Required: 1. Determine the annual depreciation expense for each of the estimated five years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by the following methods: a. Straight-line method Depreciation Accumulated Depreciation, Year Expense End of Year 1 2 3 4 5 b. Double-declining-balance method Year Depreciation Expense 1 2 3 4 5 Accumulated Depreciation, End of Year Book Value, End of Year $ $ $ 48,400 $ $ Book Value, End of Year