On January 1, the Matthews Band pays $65,800 for sound equipment. The band estimates it will use this equipment forfour years and perform 200 concerts. It estimates that after four years it can sell the equipment for $2,000. During the firstyear, the band performs 45 concerts.QS 8-5 (Static) Units-of-production depreciation LO P1Compute the first-year depreciation using the units-of-production method.Select formula for the depreciation rate of Units of Production:Calculate the first year depreciation expense:Depreciation per concertConcerts in first yearDepreciation in first year

Depreciation per unit = (65,800 - 2,000) / 200= 63,800 / 200= 319 For the first year, the band…

Answered: On January 1, the Matthews Band pays…

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter9: Depreciation (deprec)

Section: Chapter Questions

Problem 1R: Dunedin Drilling Company recently acquired a new machine at a cost of 350,000. The machine has an...

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On January 1, the Matthews Band pays $68,200 for sound equipment. The band estimates it will use this equipment for five years and perform 200 concerts. It estimates that after five years it can sell the equipment for $2,000. During the first year, the band performs 55 concerts. QS 8-4 (Algo) Straight-line depreciation LO P1 Compute the first-year depreciation using the straight-line method. Choose Numerator: 1 Straight-Line Depreciation Choose Denominator: || Annual Depreciation Expense = Depreciation expense =
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Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below] NewTech purchases computer equipment for $261,000 to use in operating activities for the next four years at estimates the equipment's salvage value at $30,000. Exercise 8-8 (Algo) Double-declining-balance depreciation LO P1 Prepare a table showing depreciation and book value for each of the four years assuming double-declining balance depreciation, Note: Enter all amounts as positive values. Year Year 1 Year 2 Year 3 Year 4 Total Depreciation for the Period Beginning-Year Depreciation - Book Value Rate Annual thepreciation 3 End of Period Accumulated Depreciation Year-End Book Valus
Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.] On April 1, Cyclone's Co. purchases a trencher for $302,000. The machine is expected to last five years and have a salvage value of $51,000. Exercise 8-11 Straight-line, partial-year depreciation LO C2 Compute depreciation expense at December 31 for the first and second year assuming the company uses the straight-line method. Choose Numerator: Choose Denominator: Annual Depreciation Annual depreciation Depreciation Expense Year Annual Depreciation Fraction of Year First year Second year

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