Straight-Line Depreciation A computer was purchased on January 1 at a cost of $5,000. It has an estimated useful life of five years and an estimated salvage value of $500. Prepare a depreciation schedule showing the depreciation expense, accumulated depreciation, and book value for each year under the straight-line method. Computer Depreciation Schedule On January 1 Year Depreciable Cost × Rate (%) = Depreciation Expense Accumulated Depreciation End of Year Book Value End of Year 1 $fill in the blank 1   fill in the blank 2   $fill in the blank 3 $fill in the blank 4 $fill in the blank 5 2 fill in the blank 6   fill in the blank 7   fill in the blank 8 fill in the blank 9 fill in the blank 10 3 fill in the blank 11   fill in the blank 12   fill in the blank 13 fill in the blank 14 fill in the blank 15 4 fill in the blank 16   fill in the blank 17   fill in the blank 18 fill in the blank 19 fill in the blank 20 5 fill in the blank 21   fill in the blank 22   fill in the blank 23 fill in the blank 24 fill in the blank 25

Depreciation Methods On January 2, Alvarez Company purchased an electroplating machine to help manufacture a part for one of its key products. The machine cost $240,000 and was estimated to have a useful life of six years or 700,000 cuttings, after which it could be sold for $24,400. Required a. Calculate each year’s depreciation expense for the period under each of the following depreciation methods (round all answers to the nearest dollar): 1. Straight-line.2. Double-declining balance.3. Units-of-production. (Assume annual production in platings of 140,000; 180,000; 100,000; 110,000; 80,000; and 90,000.)   1. Straight-Line Year DepreciationExpense Year 1 $Answer Year 2 Answer Year 3 Answer Year 4 Answer Year 5 Answer Year 6 Answer   2. Double-declining balance Year DepreciationExpense Year 1 $Answer Year 2 Answer Year 3 Answer Year 4 Answer Year 5 Answer Year 6 Answer   3. Units of Production Year DepreciationExpense Year 1 $Answer…

Partial-year depreciation Equipment acquired at a cost of $110,000 has an estimated residual value of $7,000 and an estimated useful life of 10 years. It was placed into service on May 1 of t current fiscal year, which ends on December 31. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. X Open spreadsheet a. Determine the depreciation for the current fiscal year and for the following fiscal year by the straight-line method. Round your answers to the nearest dollar. Year 1 Year 2 Year 1 Depreciation Year 2 $ b. Determine the depreciation for the current fiscal year and for the following fiscal year by the double-declining-balance method. Do not round the double-declin balance rate. Round your answers to the nearest dollar. Depreciation $ Incorrect $

Units-of-activity Depreciation A truck acquired at a cost of $225,000 has an estimated residual value of $14,100, has an estimated useful life of 37,000 miles, and was driven 3,000 miles during the year. Determine the following. If required, round your answer for the depreciation rate to two decimal places. (a) The depreciable cost $fill in the blank 1   (b) The depreciation rate $fill in the blank 2 per mile (c) The units-of-activity depreciation for the year $fill in the blank 3

Depreciation by Two Methods A storage tank acquired at the beginning of the fiscal year at a cost of $75,000 has an estimated residual value of $4,500 and an estimated useful life of five years. a. Determine the amount of annual depreciation by the straight-line method. b. Determine the amount of depreciation for the first and second years computed by the double-declining-balance method. Do not round the double-declining balance rate. If required, round your answers to the nearest dollar. Depreciation Year 1 Year 2

Revision of Depreciation A truck with a cost of $123,000 has an estimated residual value of $24,000, has an estimated useful life of 12 years, and is depreciated by the straight-line method. a.  Determine the amount of the annual depreciation.$8250 b.  Determine the book value at the end of the seventh year of use.$65250 c.  Assuming that at the start of the eighth year the remaining life is estimated to be five years and the residual value is estimated to be $15,000, determine the depreciation expense for each of the remaining five years.$

Revision of Depreciation A building with a cost of $630,000 has an estimated residual value of $126,000, has an estimated useful life of 36 years, and is depreciated by the straight-line method. a. What is the amount of the annual depreciation? b. What is the book value at the end of the twentieth year of use? c. If at the start of the twenty-first year it is estimated that the remaining life is 20 years and that the residual value is $30,000, what is the depreciation expense for each of the remaining 20 years?

Disposal of fixed asset Equipment acquired on January 6 at a cost of $386,400 has an estimated useful life of 10 years and an estimated residual value of $50,400. a. What was the annual amount of depreciation for Years 1-3 using the straight-line method of depreciation? Year Depreciation Expense Year 1 Year 2 Year 3 b. What was the book value of the equipment on January 1 of Year 4? c. Assuming that the equipment was sold on January 3 of Year 4 for $271,300, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. January 3 d. Assuming that the equipment had been sold on January 3 of Year 4 for $291,300 instead of $271,300, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. January 3

Depreciation by units of activity method A diesel-powered tractor with a cost of $120,000 and an estimated residual value of $16,400 is expected to have a useful operating life of 28,000 hours. During April , the tractor was operated 150 hours. Determine the depreciation for the month.

Depreciation by Two Methods A computer system acquired on January 1 at a cost of $180,000 has an estimated useful life of ten years. Assuming that it will have no residual value. a. Determine the depreciation for each of the first two years by the straight-line method. First Year Second Year b. Determine the depreciation for each of the first two years by the double-declining-balance method. Do not round the double-declining balance rate. If required, round your final answers to the nearest dollar. First Year Second Year 4