FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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then switch to straight line halfway through the equipment's life.
Required:
1. Calculate depreciation for each year of the asset's eight-year life.
2. Are changes in depreciation methods accounted for retrospectively or prospectively?
Answer is not complete.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Calculate depreciation for each year of the asset's eight-year life.
Depreciation for the Period
End of Period
Beginning
of Period
Book Value
Depreciation
Rate
Accumulated
Depreciation
Annual
Year
Book Value
Depreciation
2021
$
198,400 X
25 O %
49,600 X
49,600 X
148,800 X
2022
148,800 X
25 O %
37,200 X
86,800 X
111,600
2023
111,600 X
25 O %
27,900 X
114,700
83,700
2024
83,700 X
25 %
20,935 X
135,635
62,765
2025
6,325 X
56,000 X
191,635
6,765
2026
6,765
56,000
247,635
(49,235)
2027
(49,235)
56,000 X
303,635
(105,235)
2028
(105,235)
Total
$4
303,635
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Transcribed Image Text:then switch to straight line halfway through the equipment's life. Required: 1. Calculate depreciation for each year of the asset's eight-year life. 2. Are changes in depreciation methods accounted for retrospectively or prospectively? Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate depreciation for each year of the asset's eight-year life. Depreciation for the Period End of Period Beginning of Period Book Value Depreciation Rate Accumulated Depreciation Annual Year Book Value Depreciation 2021 $ 198,400 X 25 O % 49,600 X 49,600 X 148,800 X 2022 148,800 X 25 O % 37,200 X 86,800 X 111,600 2023 111,600 X 25 O % 27,900 X 114,700 83,700 2024 83,700 X 25 % 20,935 X 135,635 62,765 2025 6,325 X 56,000 X 191,635 6,765 2026 6,765 56,000 247,635 (49,235) 2027 (49,235) 56,000 X 303,635 (105,235) 2028 (105,235) Total $4 303,635
Exercise 11-15 (Algo) Double-declining-balance method; switch to straight line [LO11-2, 11-6]
On January 2, 2021, the Jackson Company purchased equipment to be used in its manufacturing process. The equipment has an
estimated life of eight years and an estimated residual value of $37,125. The expenditures made to acquire the asset were as follows:
Purchase price
Freight charges
Installation charges
$176,000
3,600
6,000
Jackson's policy is to use the double-declining-balance (DDB) method of depreciation in the early years of the equipment's life and
then switch to straight line halfway through the equipment's life.
Required:
1. Calculate depreciation for each year of the asset's eight-year life.
2. Are changes in depreciation methods accounted for retrospectively or prospectively?
X Answer is not complete.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Calculate depreciation for each year of the asset's eight-year life.
Depreciation for the Period
End of Period
Beginning
of Period
Book Value
Accumulated
Depreciation
Rate
Annual
Year
Book Value
Depreciation
Depreciation
expand button
Transcribed Image Text:Exercise 11-15 (Algo) Double-declining-balance method; switch to straight line [LO11-2, 11-6] On January 2, 2021, the Jackson Company purchased equipment to be used in its manufacturing process. The equipment has an estimated life of eight years and an estimated residual value of $37,125. The expenditures made to acquire the asset were as follows: Purchase price Freight charges Installation charges $176,000 3,600 6,000 Jackson's policy is to use the double-declining-balance (DDB) method of depreciation in the early years of the equipment's life and then switch to straight line halfway through the equipment's life. Required: 1. Calculate depreciation for each year of the asset's eight-year life. 2. Are changes in depreciation methods accounted for retrospectively or prospectively? X Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate depreciation for each year of the asset's eight-year life. Depreciation for the Period End of Period Beginning of Period Book Value Accumulated Depreciation Rate Annual Year Book Value Depreciation Depreciation
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