Question

ACC 3010 Project 3 Part 1

Complete the attached Depreciation Schedules for each of the planned asset purchases using the provided information regarding cost, useful life, and selected method. You should do only the first 4 years for the building and do the complete useful life depreciation schedules for all of the other assets. *SHOW WORK FOR ALL CALCULATIONS

PLANNED ASSET ACQUISITIONS
Reminder that the company’s fiscal year is July 1 through June 30.
Asset	Cost	Useful life	Salvage Value	Depreciation Method	Purchase Date
Land	500,000	N/A	N/A	N/A	1-Jul-21
Building	490,500	30	40,500	Straight line	1-Jul-21
Office Equipment	479,500	3	14,500	Straight line	1-Nov-21
Delivery Equipment	550,000	5	20,000	production	1-Feb-22
Additional information related to the $550,000 delivery equipment purchase: It is ESTIMATED that the equipment will be ABLE TO DRIVE 250,000 total miles over its lifetime. To complete the depreciation schedule, PRESUME that the actual miles driven for its useful life are as indicated below. Also, round depreciation expense per unit to the nearest cent and depreciation expense to the nearest dollar.
	Year 1	32,500
	Year 2	56,800
	Year 3	55,950
	Year 4	52,600
	Year 5	56,500

Building Depreciation Schedule
		Depreciation for the Year
	Asset	Dep'ble		Depreciation	Accumulated	Book
Date	Cost	basis	Rate	Expense	Depreciation	Value
7/1/2021
6/30/2022
6/30/2023
6/30/2024
6/30/2025
Office Equipment Depreciation Schedule
		Depreciation for the Year
	Asset	Dep'ble		Depreciation	Accumulated	Book
Date	Cost	basis	Rate	Expense	Depreciation	Value
11/1/2021
6/30/2022
6/30/2023
6/30/2024
6/30/2025
Delivery Equipment Depreciation Schedule
		Depreciation for the Year
		Depreciation
	Asset	per unit	Units of	Depreciation	Accumulated	Book
Date	Cost		Production	Expense	Depreciation	Value
2/1/2022
6/30/2022
6/30/2023
6/30/2024
6/30/2025
6/30/2026

Answer 1

Following are the Depreciation Schedule of Assets:-

Building Depreciation Schedule-Straight Line Method Annual Depreciation expense = (Asset cost – Salvage Value) / Useful life of the asset (490500-40500)/30=15000
Date	Cost	Dep basis	Rate	Dep Expenses	Accumulated Dep	Book value
7/1/2021	490,500	450,000
6/30/2022	490,500	450,000	3.33%	15,000	15,000	475,500.00
6/30/2023	490,500	450,000	3.33%	15,000	30,000	460,500.00
6/30/2024	490,500	450,000	3.33%	15,000	45,000	445,500.00
6/30/2025	490,500	450,000	3.33%	15,000	60,000	430,500.00
Office Equipment Depreciation Schedule-Straight Line Method Annual Depreciation expense = (Asset cost – Salvage Value) / Useful life of the asset (479500-14500)/3=155000
Date	Cost	Dep basis	Rate	Dep Expenses	Accumulated Dep	Book value
1/11/2021	479,500.00	465,000.00
6/30/2022	479,500.00	465,000.00	33.33%	103,333.33*	103333	376,166.67
6/30/2023	479,500.00	465,000.00	33.33%	155,000.00	258333	221,166.67
6/30/2024	479,500.00	465,000.00	33.33%	155,000.00	413333	66,166.67
6/30/2025	479,500.00	465,000.00	33.33%	51,666.67**	465000	14,500.00
* 8 month Dep **4 month Dep
Delivery Equipment Depreciating Schedule-Unit of Production Method Per Unit Depreciation: (Asset cost – Residual value) / Useful life in units of production (550000-20000)/250000= 2.12
Date	Cost	Dep per unit	unit of production	Dep Expenses	Accumulated Dep	Book value
1/2/2022	550,000.00
6/30/2022	550,000.00	2.12	32,500.00	68,900.00	68900	481,100.00
6/30/2023	550,000.00	2.12	56,800.00	120,416.00	189316	360,684.00
6/30/2024	550,000.00	2.12	55,950.00	118,614.00	307930	242,070.00
6/30/2025	550,000.00	2.12	52,600.00	111,512.00	419442	130,558.00
6/30/2026	550,000.00	2.12	56,500.00	119,780.00	539222	10,778.00