In: Accounting
Please show all the calculation.
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Q2
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Q1: | ||||||
Straight-line method: | ||||||
Depreciation rate=One year/Useful life=1/4=0.25=25% | ||||||
Depreciable cost=Cost-Residaul value=312000-8000=$ 304000 | ||||||
Straight-line depreciation schedule | ||||||
Date | Asset cost | Depreciation rate | Depreciable cost | Depreciation expense | Accumulated depreciation | Carrying amount |
March 27,2018 | 312000 | 312000 | ||||
December 31,2018 | (for 9 months) | 25% | 304000 | 57000 | 57000 | 255000 |
(304000*25%*9/12) | ||||||
December 31,2019 | 25% | 304000 | 76000 | 133000 | 179000 | |
December 31,2020 | 25% | 304000 | 76000 | 209000 | 103000 | |
December 31,2021 | 25% | 304000 | 76000 | 285000 | 27000 | |
December 31,2022 | (for 3 months) | 25% | 304000 | 19000 | 304000 | 8000 |
(304000*25%*3/12) | ||||||
Depreciation expense=Depreciable cost*Depreciation rate | ||||||
Asset book value=Cost-Accumulated depreciation | ||||||
Accumulated depreciation=Depreciation expense till date | ||||||
Double-diminishing-balance method: | ||||||
DDB rate=SL depreciation rate*DDB rate multiplier=25%*2=50% | ||||||
Date | Asset cost | DDB rate | Asset book value | Depreciation expense | Accumulated depreciation | Asset book value |
March 27,2018 | 312000 | 312000 | ||||
December 31,2018 | (for 9 months) | 50% | 312000 | 117000 | 117000 | 195000 |
(312000*50%*9/12) | ||||||
December 31,2019 | 50% | 195000 | 97500 | 214500 | 97500 | |
December 31,2020 | 50% | 97500 | 48750 | 263250 | 48750 | |
December 31,2021 | 50% | 48750 | 24375 | 287625 | 24375 | |
December 31,2022 | (for 3 months) | 50% | 24375 | 3047 | 290672 | 21328 |
(24375*50%*3/12) | ||||||
Depreciation expense=Asset book value*Depreciation rate | ||||||
Units-of-production method: | ||||||
Depreciation expense per unit=Depreciable cost/Total unit output=304000/80000=$ 3.8 per unit | ||||||
Units of production depreciation schedule: | ||||||
Date | Asset cost | Depreciation per unit | Number of units | Depreciation expense | Accumulated depreciation | Asset book value |
January 2,2018 | 312000 | 312000 | ||||
December 31,2018 | 3.8 | 14200 | 53960 | 53960 | 258040 | |
December 31,2019 | 3.8 | 20000 | 76000 | 129960 | 182040 | |
December 31,2020 | 3.8 | 20800 | 79040 | 209000 | 103000 | |
December 31,2021 | 3.8 | 20000 | 76000 | 285000 | 27000 | |
December 31,2022 | 3.8 | 5000 | 19000 | 304000 | 8000 | |
Depreciation expense=Depreciation per unit*Depreciation rate | ||||||
Q2: | ||||||
Cost of the equipment: | ||||||
$ | ||||||
Purchase price | 81910 | |||||
Freight charges | 470 | |||||
Transit insurance | 219 | |||||
Employee training | 2212 | |||||
Testing and installation | 3041 |
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