In: Accounting
On January 1, 2018, the Allegheny Corporation purchased
machinery for $146,000. The estimated service life of...
On January 1, 2018, the Allegheny Corporation purchased
machinery for $146,000. The estimated service life of the machinery
is 10 years and the estimated residual value is $3,000. The machine
is expected to produce 220,000 units during its life.
Required:
Calculate depreciation for 2018 and 2019 using each of the
following methods.
1. Straight line.
2. Sum-of-the-years'-digits.
3. Double-declining balance.
4. One hundred fifty percent declining
balance.
5. Units of production (units produced in 2018,
38,000; units produced in 2019, 33,000).
Complete this question by entering your answers in the
tabs below.
- Required 1
- Required 2
- Required 3
- Required 4
- Required 5
Calculate depreciation for 2018 and 2019 using straight line
method.
|
|
Straight-Line Depreciation |
|
Choose Numerator: |
/ |
Choose Denominator: |
= |
Annual Depreciation Expense |
|
|
/ |
|
= |
Depreciation Expense |
|
/ |
|
= |
0 |
|
Depreciation Expense |
|
2018 |
|
|
2019 |
|
|
Calculate depreciation for 2018 and 2019 using sum-of-the-years'
digits.
|
|
Sum-of-the-years' digits
depreciation |
|
Depreciable Base |
x |
Rate per Year |
= |
Depreciation Expense |
2018 |
|
x |
|
= |
|
2019 |
|
x |
|
=
|
|
Calculate depreciation for 2018 and 2019 using double-declining
balance.
|
|
|
Depreciation for the Period |
End of Period |
Annual Period |
Beginning of Period Book Value |
Depreciation Rate (%) |
Depreciation Expense |
Accumulated Depreciation |
Book Value |
2018 |
|
|
|
|
$0 |
2019 |
|
|
|
$0 |
$0 |
|
Calculate depreciation for 2018 and 2019 using one hundred fifty
percent declining balance.
|
|
|
Depreciation for the Period |
End of Period |
Annual Period |
Beginning of Period Book Value |
Depreciation Rate |
Depreciation Expense |
Accumulated Depreciation |
Book Value |
2018 |
|
|
|
|
$0 |
2019 |
|
|
|
$0 |
$0 |
|
Calculate depreciation for 2018 and 2019 using units of
production (units produced in 2018, 38,000; units produced in 2019,
33,000). (Round "Depreciation per unit rate" answers to 2 decimal
places.)
|
|
Select formula for Units of Production
Depreciation: |
|
Calculate 2018 depreciation
expense: |
Depreciation per unit rate |
|
Units produced in 2018 |
|
Depreciation in 2018 |
|
Calculate 2019 depreciation
expense: |
Depreciation per unit rate |
|
Units produced in 2019 |
|
Depreciation in 2019 |
|