FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- The Annual Depreciation Expense be using straight-line depreciation will be $6250, the accounts would be used in the adjusting entry for a full year of depreciation will be Debit - Depreciation Expense, Truck</> Credit - Accumulated Depreciation, Truck. 13) Under the Fixed assets section of the balance sheet, what number would we put in the "Accumulated Depreciation, Truck" section for Year # 4 if depreciation is calculated ANNUALLY (assume Jan 1st, 2019 to Dec 31st, 2019 is Year #1).arrow_forward3. If a vehicle is bought for $40,000, has a scrap value of $4,000, and a reducing balance method with a depreciation rate of 25% is used, what is the book value of the vehicle at the end of year 4?arrow_forwardUsing the declining-balance method, complete the table as shown (twice the straight-line rate): Auto: $30,000 Estimated life: 5 years Residual value: $800 Accumulated Accumulated Depreciation Expense Book Value Book Value Year Cost Depreciation B.O.Y Depreciation E.O.Y B.O.Y E.O.Y 1 $ 30,000 $ 30,000 $ 30,000arrow_forward
- On January 1, 2023, a machine was purchased for $105,000. The machine has an estimated salvage value of $6,420 and an estimated useful life of 5 years. The machine can operate for 106,000 hours before it needs to be replaced. The company closed its books on December 31 and operates the machine as follows: 2023, 21,200 hours; 2024, 26,500 hours; 2025, 15,900 hours: 2026, 31,800 hours; and 2027, 10,600 hours. Compute the annual depreciation charges over the machine's life assuming a December 31 year-end for each of the following depreciation methods. (Round rate per hour to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 45,892.) 1. Straight-line Methodi $ 2. Activity Method Year 2023 2024 2025 $ 19,716 19,716 24,645 14,787arrow_forward1. Determine the annual depreciation expense for each of the estimated 5 years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by (a) the straight-line method and (b) the double-declining-balance method. a. Straight-line method Additional Instruction Accumulated Depreciation, Year Depreciation Expense End of Year Book Value, End of Year 1 2 3 4 5 b. Double-declining-balance method Accumulated Depreciation, Year Depreciation Expense End of Year Book Value, End of Year 1 2 3 4 5 New lithographic equipment, acquired at a cost of $859,200 on March 1 at the beginning of a fiscal year, has an estimated useful life of 5 years and an estimated residual value of $96,660. The manager requested…arrow_forwardThe formula for double-declining-balance depreciation on an asset with a five-year life in its second year is Book Value × 40% = Depreciation Expense. (Book Value – Residual Value) × 40% = Depreciation Expense. (Book Value – Residual Value) × 20% = Depreciation Expense. (Original Cost × 30%) – Residual Value = Depreciation Expense.arrow_forward
- 2. A vehicle is bought for $35, 500 and has a life of 4 years. Using the reducing balance method (a 45% charge is to be made each year) calculate the book value of the vehicle at the end of every year. Year Depreciation (amount %) Book Value (Total Depreciation) 1234arrow_forwardSolve all questions otherwise leavearrow_forward(c) Compute the amount of depreciation for each of Years 1 through 3 using the depreciation rate to 2 decimal places, e.g. 15.84% and final answers to 0 decimal places, e.g. 45,892.) Depreciation for Year 1 Depreciation for Year 2 Depreciation for Year 3 eTextbook and Media LA $ $ LA double-declining-balance method. (Round $ Assistance Usarrow_forward
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