Depreciation : It refers to the reduction in the monetary value of fixed tangible assets over its useful life due to its wear and tear, use, or obsolescence. In other words, it is the method of distributing the cost of tangible fixed assets over its estimated useful life. Declining-balance depreciation: It is an accelerated method of depreciation under which the depreciation declines in each successive year until the value of asset becomes zero. Under this method, the book value (original cost less accumulated depreciation ) of the long-term asset is decreased by a fixed rate. It is double the rate of the straight-line depreciation. Use the following formula to determine the annual depreciation: Annual depreciation = Purchase price × ( 2 Useful life ) To compute: the annual depreciation for the first year under the declining-balance method.

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Answer 1

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Chapter 9, Problem 9.13BE

To determine

Depreciation: It refers to the reduction in the monetary value of fixed tangible assets over its useful life due to its wear and tear, use, or obsolescence. In other words, it is the method of distributing the cost of tangible fixed assets over its estimated useful life.

Declining-balance depreciation:

It is an accelerated method of depreciation under which the depreciation declines in each successive year until the value of asset becomes zero. Under this method, the book value (original cost less accumulated depreciation) of the long-term asset is decreased by a fixed rate. It is double the rate of the straight-line depreciation. Use the following formula to determine the annual depreciation:

Annual depreciation = Purchase price × (2Useful life)

To compute: the annual depreciation for the first year under the declining-balance method.

To determine

To compute: the annual depreciation for the second year under the declining-balance method

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Instructions Equipment was acquired at the beginning of the year at a cost of $637,500. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of 9 years and an estimated residual value of $43,195. Required: a. What was the depreciation for the first year? Round your intermediate calculations to 4 decimal places. Round the depreciation for the year to the nearest whole dollar. b. Assuming that the equipment was sold at the end of the second year for $631,697 determine the gain or loss on the sale of the equipment Journalize the entry on Dec. 31 to record the sale. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal SAMSUNG PreviouS Next

Equipment was acquired at the beginning of the year at a cost of $637,500. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of 9 years and an estimated residual value of $43,195. A. What was the depreciation for the first year? Round your intermediate calculations to 4 decimal places. Round the depreciation for the year to the nearest whole dollar. B. Assuming that the equipment was sold at the end of the second year for $631,697, determine the gain or loss on the sale of the equipment. C. Journalize the entry on Dec. 31 to record the sale. Refer to the Chart of Accounts for exact wording of account titles.

A building acquired at the beginning of the year at a cost of $93,600 has an estimated residual value of $2,800 and an estimated useful life of four years. Determine the following. rate (a) The double-declining-balance (b) The double-declining-balance depreciation for the first year %

Answer 2

Question

Chapter 9, Problem 9.13BE

To determine

Depreciation: It refers to the reduction in the monetary value of fixed tangible assets over its useful life due to its wear and tear, use, or obsolescence. In other words, it is the method of distributing the cost of tangible fixed assets over its estimated useful life.

Declining-balance depreciation:

It is an accelerated method of depreciation under which the depreciation declines in each successive year until the value of asset becomes zero. Under this method, the book value (original cost less accumulated depreciation) of the long-term asset is decreased by a fixed rate. It is double the rate of the straight-line depreciation. Use the following formula to determine the annual depreciation:

Annual depreciation = Purchase price × (2Useful life)

To compute: the annual depreciation for the first year under the declining-balance method.

To determine

To compute: the annual depreciation for the second year under the declining-balance method

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Answer 3

Question

Chapter 9, Problem 9.13BE

To determine

Depreciation: It refers to the reduction in the monetary value of fixed tangible assets over its useful life due to its wear and tear, use, or obsolescence. In other words, it is the method of distributing the cost of tangible fixed assets over its estimated useful life.

Declining-balance depreciation:

It is an accelerated method of depreciation under which the depreciation declines in each successive year until the value of asset becomes zero. Under this method, the book value (original cost less accumulated depreciation) of the long-term asset is decreased by a fixed rate. It is double the rate of the straight-line depreciation. Use the following formula to determine the annual depreciation:

Annual depreciation = Purchase price × (2Useful life)

To compute: the annual depreciation for the first year under the declining-balance method.

To determine

To compute: the annual depreciation for the second year under the declining-balance method

Expert Solution & Answer

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Answer 4

Question

Chapter 9, Problem 9.13BE

To determine

Depreciation: It refers to the reduction in the monetary value of fixed tangible assets over its useful life due to its wear and tear, use, or obsolescence. In other words, it is the method of distributing the cost of tangible fixed assets over its estimated useful life.

Declining-balance depreciation:

It is an accelerated method of depreciation under which the depreciation declines in each successive year until the value of asset becomes zero. Under this method, the book value (original cost less accumulated depreciation) of the long-term asset is decreased by a fixed rate. It is double the rate of the straight-line depreciation. Use the following formula to determine the annual depreciation:

Annual depreciation = Purchase price × (2Useful life)

To compute: the annual depreciation for the first year under the declining-balance method.

To determine

To compute: the annual depreciation for the second year under the declining-balance method

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 5

Chapter 9, Problem 9.13BE

To determine

Depreciation: It refers to the reduction in the monetary value of fixed tangible assets over its useful life due to its wear and tear, use, or obsolescence. In other words, it is the method of distributing the cost of tangible fixed assets over its estimated useful life.

Declining-balance depreciation:

It is an accelerated method of depreciation under which the depreciation declines in each successive year until the value of asset becomes zero. Under this method, the book value (original cost less accumulated depreciation) of the long-term asset is decreased by a fixed rate. It is double the rate of the straight-line depreciation. Use the following formula to determine the annual depreciation:

Annual depreciation = Purchase price × (2Useful life)

To compute: the annual depreciation for the first year under the declining-balance method.

To determine

To compute: the annual depreciation for the second year under the declining-balance method

Answer 6

Chapter 9, Problem 9.13BE

To determine

Depreciation: It refers to the reduction in the monetary value of fixed tangible assets over its useful life due to its wear and tear, use, or obsolescence. In other words, it is the method of distributing the cost of tangible fixed assets over its estimated useful life.

Declining-balance depreciation:

It is an accelerated method of depreciation under which the depreciation declines in each successive year until the value of asset becomes zero. Under this method, the book value (original cost less accumulated depreciation) of the long-term asset is decreased by a fixed rate. It is double the rate of the straight-line depreciation. Use the following formula to determine the annual depreciation:

Annual depreciation = Purchase price × (2Useful life)

To compute: the annual depreciation for the first year under the declining-balance method.

Answer 7

Chapter 9, Problem 9.13BE

To determine

Depreciation: It refers to the reduction in the monetary value of fixed tangible assets over its useful life due to its wear and tear, use, or obsolescence. In other words, it is the method of distributing the cost of tangible fixed assets over its estimated useful life.

Declining-balance depreciation:

It is an accelerated method of depreciation under which the depreciation declines in each successive year until the value of asset becomes zero. Under this method, the book value (original cost less accumulated depreciation) of the long-term asset is decreased by a fixed rate. It is double the rate of the straight-line depreciation. Use the following formula to determine the annual depreciation:

Annual depreciation = Purchase price × (2Useful life)

To compute: the annual depreciation for the first year under the declining-balance method.

Answer 8

To determine

To compute: the annual depreciation for the second year under the declining-balance method

Answer 9

To determine

To compute: the annual depreciation for the second year under the declining-balance method

Answer 10

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Answer 11

Expert Solution & Answer

Answer 12

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Answer 13

Ch. 9 - Prob. 1Q Ch. 9 - Prob. 2Q Ch. 9 - Prob. 3Q Ch. 9 - Prob. 4Q Ch. 9 - Prob. 5Q Ch. 9 - Prob. 6Q Ch. 9 - Prob. 7Q Ch. 9 - Prob. 8Q Ch. 9 - Prob. 9Q Ch. 9 - In the fourth year of an assets 5-year useful...

Solution Summary: The author explains the declining-balance depreciation method, which reduces the monetary value of tangible assets over its useful life due to its wear and tear, use, or obsolescence.

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To compute: the annual depreciation for the second year under the declining-balance method

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