Required: 1. For years 1 and 2 only, prepare separate depreciation schedules assuming: a. Straight-line method. b. Units-of-production method. c. Double-declining-balance method. Complete this question by entering your answers in the tabs below. Required 1a Required 1b Required 1c For years 1 and 2 only, prepare separate depreciation schedules assuming straight-line method. Note: Do not round intermediate calculations and round your final answers to the nearest dollar amount. Year At acquisition 1 Depreciation Expense Accumulated Depreciation Net Book Value 2

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Topic Video
Question
Solve all questions
You are a financial analyst for Loch Motor Company and have been asked to determine the impact of alternative depreciation
methods. For your analysis, you have been asked to compare methods based on a machine that cost $126,000. The estimated useful
life is 16 years and the estimated residual value is $11,760. The machine has an estimated useful life in productive output of 204,000
units. Actual output was 23,000 in year 1 and 19,000 in year 2.
Required:
1. For years 1 and 2 only, prepare separate depreciation schedules assuming:
a. Straight-line method.
b. Units-of-production method.
c. Double-declining-balance method.
Complete this question by entering your answers in the tabs below.
Required 1a
Required 1b Required 1c
For years 1 and 2 only, prepare separate depreciation schedules assuming straight-line method.
Note: Do not round intermediate calculations and round your final answers to the nearest dollar amount.
Year
Depreciation
Expense
Accumulated
Depreciation
Net Book Value
At acquisition
1
2
< Required 1a
Required 1b >
Transcribed Image Text:You are a financial analyst for Loch Motor Company and have been asked to determine the impact of alternative depreciation methods. For your analysis, you have been asked to compare methods based on a machine that cost $126,000. The estimated useful life is 16 years and the estimated residual value is $11,760. The machine has an estimated useful life in productive output of 204,000 units. Actual output was 23,000 in year 1 and 19,000 in year 2. Required: 1. For years 1 and 2 only, prepare separate depreciation schedules assuming: a. Straight-line method. b. Units-of-production method. c. Double-declining-balance method. Complete this question by entering your answers in the tabs below. Required 1a Required 1b Required 1c For years 1 and 2 only, prepare separate depreciation schedules assuming straight-line method. Note: Do not round intermediate calculations and round your final answers to the nearest dollar amount. Year Depreciation Expense Accumulated Depreciation Net Book Value At acquisition 1 2 < Required 1a Required 1b >
Expert Solution
steps

Step by step

Solved in 5 steps with 6 images

Blurred answer
Knowledge Booster
Depreciation Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education