Depreciation by Two Methods; Sale of Fixed Asset New lithographic equipment, acquired at a cost of $843,750 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 $72,600. 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 $123,600. 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 7576dbf1f067fc1_1 $fill in the blank 7576dbf1f067fc1_2 $fill in the blank 7576dbf1f067fc1_3 2 $fill in the blank 7576dbf1f067fc1_4 $fill in the blank 7576dbf1f067fc1_5 $fill in the blank 7576dbf1f067fc1_6 3 $fill in the blank 7576dbf1f067fc1_7 $fill in the blank 7576dbf1f067fc1_8 $fill in the blank 7576dbf1f067fc1_9 4 $fill in the blank 7576dbf1f067fc1_10 $fill in the blank 7576dbf1f067fc1_11 $fill in the blank 7576dbf1f067fc1_12 5 $fill in the blank 7576dbf1f067fc1_13 $fill in the blank 7576dbf1f067fc1_14 $fill in the blank 7576dbf1f067fc1_15 b. Double-declining-balance method Year Depreciation Expense Accumulated Depreciation, End of Year Book Value, End of Year 1 $fill in the blank 7576dbf1f067fc1_16 $fill in the blank 7576dbf1f067fc1_17 $fill in the blank 7576dbf1f067fc1_18 2 $fill in the blank 7576dbf1f067fc1_19 $fill in the blank 7576dbf1f067fc1_20 $fill in the blank 7576dbf1f067fc1_21 3 $fill in the blank 7576dbf1f067fc1_22 $fill in the blank 7576dbf1f067fc1_23 $fill in the blank 7576dbf1f067fc1_24 4 $fill in the blank 7576dbf1f067fc1_25 $fill in the blank 7576dbf1f067fc1_26 $fill in the blank 7576dbf1f067fc1_27 5 $fill in the blank 7576dbf1f067fc1_28 $fill in the blank 7576dbf1f067fc1_29 $fill in the blank 7576dbf1f067fc1_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 6d462fff1fe603c_2 fill in the blank 6d462fff1fe603c_3 fill in the blank 6d462fff1fe603c_5 fill in the blank 6d462fff1fe603c_6 fill in the blank 6d462fff1fe603c_8 fill in the blank 6d462fff1fe603c_9 fill in the blank 6d462fff1fe603c_11 fill in the blank 6d462fff1fe603c_12 3. Journalize the entry to record the sale in (2) assuming that the equipment was sold for $106,100 instead of $123,600. If an amount box does not require an entry, leave it blank. fill in the blank 11b7affccfa605a_2 fill in the blank 11b7affccfa605a_3 fill in the blank 11b7affccfa605a_5 fill in the blank 11b7affccfa605a_6 fill in the blank 11b7affccfa605a_8 fill in the blank 11b7affccfa605a_9 fill in the blank 11b7affccfa605a_11 fill in the blank 11b7affccfa605a_12

Depreciation by Two Methods; Sale of Fixed Asset New lithographic equipment, acquired at a cost of $843,750 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 $72,600. 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 $123,600. 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 7576dbf1f067fc1_1 $fill in the blank 7576dbf1f067fc1_2 $fill in the blank 7576dbf1f067fc1_3 2 $fill in the blank 7576dbf1f067fc1_4 $fill in the blank 7576dbf1f067fc1_5 $fill in the blank 7576dbf1f067fc1_6 3 $fill in the blank 7576dbf1f067fc1_7 $fill in the blank 7576dbf1f067fc1_8 $fill in the blank 7576dbf1f067fc1_9 4 $fill in the blank 7576dbf1f067fc1_10 $fill in the blank 7576dbf1f067fc1_11 $fill in the blank 7576dbf1f067fc1_12 5 $fill in the blank 7576dbf1f067fc1_13 $fill in the blank 7576dbf1f067fc1_14 $fill in the blank 7576dbf1f067fc1_15 b. Double-declining-balance method Year Depreciation Expense Accumulated Depreciation, End of Year Book Value, End of Year 1 $fill in the blank 7576dbf1f067fc1_16 $fill in the blank 7576dbf1f067fc1_17 $fill in the blank 7576dbf1f067fc1_18 2 $fill in the blank 7576dbf1f067fc1_19 $fill in the blank 7576dbf1f067fc1_20 $fill in the blank 7576dbf1f067fc1_21 3 $fill in the blank 7576dbf1f067fc1_22 $fill in the blank 7576dbf1f067fc1_23 $fill in the blank 7576dbf1f067fc1_24 4 $fill in the blank 7576dbf1f067fc1_25 $fill in the blank 7576dbf1f067fc1_26 $fill in the blank 7576dbf1f067fc1_27 5 $fill in the blank 7576dbf1f067fc1_28 $fill in the blank 7576dbf1f067fc1_29 $fill in the blank 7576dbf1f067fc1_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 6d462fff1fe603c_2 fill in the blank 6d462fff1fe603c_3 fill in the blank 6d462fff1fe603c_5 fill in the blank 6d462fff1fe603c_6 fill in the blank 6d462fff1fe603c_8 fill in the blank 6d462fff1fe603c_9 fill in the blank 6d462fff1fe603c_11 fill in the blank 6d462fff1fe603c_12 3. Journalize the entry to record the sale in (2) assuming that the equipment was sold for $106,100 instead of $123,600. If an amount box does not require an entry, leave it blank. fill in the blank 11b7affccfa605a_2 fill in the blank 11b7affccfa605a_3 fill in the blank 11b7affccfa605a_5 fill in the blank 11b7affccfa605a_6 fill in the blank 11b7affccfa605a_8 fill in the blank 11b7affccfa605a_9 fill in the blank 11b7affccfa605a_11 fill in the blank 11b7affccfa605a_12

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 79.1C

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2. PR.10-04.ALGO

Depreciation by Two Methods; Sale of Fixed Asset

New lithographic equipment, acquired at a cost of $843,750 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 $72,600. 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 $123,600.

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 7576dbf1f067fc1_1	$fill in the blank 7576dbf1f067fc1_2	$fill in the blank 7576dbf1f067fc1_3
2	$fill in the blank 7576dbf1f067fc1_4	$fill in the blank 7576dbf1f067fc1_5	$fill in the blank 7576dbf1f067fc1_6
3	$fill in the blank 7576dbf1f067fc1_7	$fill in the blank 7576dbf1f067fc1_8	$fill in the blank 7576dbf1f067fc1_9
4	$fill in the blank 7576dbf1f067fc1_10	$fill in the blank 7576dbf1f067fc1_11	$fill in the blank 7576dbf1f067fc1_12
5	$fill in the blank 7576dbf1f067fc1_13	$fill in the blank 7576dbf1f067fc1_14	$fill in the blank 7576dbf1f067fc1_15

b. Double-declining-balance method

Year	Depreciation Expense	Accumulated Depreciation, End of Year	Book Value, End of Year
1	$fill in the blank 7576dbf1f067fc1_16	$fill in the blank 7576dbf1f067fc1_17	$fill in the blank 7576dbf1f067fc1_18
2	$fill in the blank 7576dbf1f067fc1_19	$fill in the blank 7576dbf1f067fc1_20	$fill in the blank 7576dbf1f067fc1_21
3	$fill in the blank 7576dbf1f067fc1_22	$fill in the blank 7576dbf1f067fc1_23	$fill in the blank 7576dbf1f067fc1_24
4	$fill in the blank 7576dbf1f067fc1_25	$fill in the blank 7576dbf1f067fc1_26	$fill in the blank 7576dbf1f067fc1_27
5	$fill in the blank 7576dbf1f067fc1_28	$fill in the blank 7576dbf1f067fc1_29	$fill in the blank 7576dbf1f067fc1_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 6d462fff1fe603c_2	fill in the blank 6d462fff1fe603c_3
		fill in the blank 6d462fff1fe603c_5	fill in the blank 6d462fff1fe603c_6
		fill in the blank 6d462fff1fe603c_8	fill in the blank 6d462fff1fe603c_9
		fill in the blank 6d462fff1fe603c_11	fill in the blank 6d462fff1fe603c_12

3. Journalize the entry to record the sale in (2) assuming that the equipment was sold for $106,100 instead of $123,600. If an amount box does not require an entry, leave it blank.

		fill in the blank 11b7affccfa605a_2	fill in the blank 11b7affccfa605a_3
		fill in the blank 11b7affccfa605a_5	fill in the blank 11b7affccfa605a_6
		fill in the blank 11b7affccfa605a_8	fill in the blank 11b7affccfa605a_9
		fill in the blank 11b7affccfa605a_11	fill in the blank 11b7affccfa605a_12

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