Exercise 9-15 Alternative depreciation methods On April 1, 2023, Ice Drilling Co. purchased a trencher for $155,000. The machine was expected to last five years and have a residual value of $15,500. Required: Calculate depreciation expense for 2023 and 2024 to the nearest month, using (a) the straight-line method, and (b) the double- declining balance method. The company has a December 31 year-end. (Do not round intermediate calculations.) Double Declining Balance Year Straight Line 2023 2024

Exercise 9-15 Alternative depreciation methods On April 1, 2023, Ice Drilling Co. purchased a trencher for $155,000. The machine was expected to last five years and have a residual value of $15,500. Required: Calculate depreciation expense for 2023 and 2024 to the nearest month, using (a) the straight-line method, and (b) the double- declining balance method. The company has a December 31 year-end. (Do not round intermediate calculations.) Double Declining Balance Year Straight Line 2023 2024

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Problem 6-25 (Algo) Identify depreciation methods used LO 3 Grove Co. acquired a production machine on January 1, 2019, at a cost of $495,000. The machine is expected to have a four-year useful life, with a salvage value of $86,000. The machine is capable of producing 56,000 units of product in its lifetime. Actual production was as follows: 12,320 units in 2019; 17,920 units in 2020; 15,680 units in 2021; 10,080 units in 2022. Following is the comparative balance sheet presentation of the net book value of the production machine at December 31 for each year of the asset’s life, using three alternative depreciation methods (items a–c): Required: Identify the depreciation method used for each of the following comparative balance sheet presentations (items a–c). If a declining-balance method is used, be sure to indicate the percentage (150% or 200%). (Hint: Read the balance sheet from right to left to determine how much has been depreciated each year. Remember that December 31, 2019, is…
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