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Computing Partial Period Depreciation under Multiple Depreciation Methods To demonstrate the computations involved in several methods...
Computing Partial Period Depreciation under Multiple Depreciation Methods
To demonstrate the computations involved in several methods of depreciating a fixed asset, the following information is provided.
| Cost and residual value | Estimated service life | ||
| Acquisition cost | $20,000 | Years | 5 |
| Residual value | $800 | Service hours | 16,000 |
| Productive output (units) | 38,400 |
Required
Compute the annual depreciation using each of the following methods assuming that the asset was purchased on August 1, 2020.
a. Sum-of-the-years’-digits method: Compute the depreciation amount for each year.
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Answer | Answer | Answer | Answer | Answer | Answer |
b. Double-declining-balance method: Compute the depreciation amount for each year.
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Answer | Answer | Answer | Answer | Answer | Answer |
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ekkarill92 answered 1 year agoRelated Solutions
Computing Partial Period Depreciation under Multiple Depreciation Methods To demonstrate the computations involved in several methods...
Computing Partial Period Depreciation under Multiple
Depreciation Methods
To demonstrate the computations involved in several methods of
depreciating a fixed asset, the following information is
provided.
Cost and residual value
Estimated service life
Acquisition cost
$62,500
Years
5
Residual value
$2,500
Service hours
50,000
Productive output (units)
120,000
Required
Compute the annual depreciation using each of the following
methods assuming that the asset was purchased on August 1,
2020.
a. Straight-line depreciation: Compute the annual
depreciation rate and amount for...
P8-3 (Algo) Computing the Acquisition Cost and Recording Depreciation under Three Alternative Methods LO8-2, 8-3 [The...
P8-3 (Algo) Computing the Acquisition Cost and Recording
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[The following information applies to the questions
displayed below.]
At the beginning of the year, Plummer's Sports Center bought
three used fitness machines from Brunswick Corporation. The
machines immediately were overhauled, installed, and started
operating. The machines were different; therefore, each had to be
recorded separately in the accounts.
Machine A
Machine B
Machine C
Invoice price paid for asset
$
20,500
$
34,400
$...
E11.3 (LO 1, 2 ) (Depreciation Computations—SYD, DDB—Partial Periods) Judds Company purchased a new plant asset...
E11.3
(LO 1, 2 )
(Depreciation Computations—SYD, DDB—Partial Periods) Judds Company
purchased a new plant asset on April 1, 2020, at a cost of
$711,000. It was estimated to have a service life of 20 years and a
salvage value of $60,000. Judds' accounting period is the calendar
year.
Instructions
a.
Compute the depreciation for this asset for 2020 and 2021 using
the sum-of-the-years'-digits method.
b.
Compute the depreciation for this asset for 2020 and 2021 using
the double-declining-balance method.
Describe the three most common methods of computing depreciation for fixed assets and the factors used...
Describe the three most common methods of computing depreciation
for fixed assets and the factors used in calculating
depreciation
Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $65,070. The...
Depreciation by Three Methods; Partial Years
Perdue Company purchased equipment on April 1 for $65,070. The
equipment was expected to have a useful life of three years, or
7,020 operating hours, and a residual valueof $1,890. The equipment
was used for 1,300 hours during Year 1, 2,500 hours in Year 2,
2,100 hours in Year 3, and 1,120 hours in Year 4.
Required:
Determine the amount of depreciation expense for the years ended
December 31, Year 1, Year 2, Year...
Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $270,000. The...
Depreciation by Three Methods; Partial Years
Perdue Company purchased equipment on April 1 for $270,000. The
equipment was expected to have a useful life of three years or
18,000 operating hours, and a residual value of $9,000. The
equipment was used for 7,500 hours during Year 1, 5,500 hours in
Year 2, 4,000 hours in Year 3, and 1,000 hours in Year 4.
Required:
Determine the amount of depreciation expense for the years ended
December 31, Year 1, Year 2,...
Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $49,950. The...
Depreciation by Three Methods; Partial Years Perdue Company
purchased equipment on April 1 for $49,950. The equipment was
expected to have a useful life of three years, or 5,400 operating
hours, and a residual value of $1,350. The equipment was used for
1,000 hours during Year 1, 1,900 hours in Year 2, 1,600 hours in
Year 3, and 900 hours in Year 4. Required: Determine the amount of
depreciation expense for the years ended December 31, Year 1, Year
2,...
Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $97,470. The...
Depreciation by Three Methods; Partial Years
Perdue Company purchased equipment on April 1 for $97,470. The
equipment was expected to have a useful life of three years, or
7,560 operating hours, and a residual value of $2,970. The
equipment was used for 1,400 hours during Year 1, 2,600 hours in
Year 2, 2,300 hours in Year 3, and 1,260 hours in Year 4.
Required:
Determine the amount of depreciation expense for the years ended
December 31, Year 1, Year 2,...
Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $38,880. The...
Depreciation by Three Methods; Partial Years
Perdue Company purchased equipment on April 1 for $38,880. The
equipment was expected to have a useful life of three years, or
5,400 operating hours, and a residual value of $1,080. The
equipment was used for 1,000 hours during Year 1, 1,900 hours in
Year 2, 1,600 hours in Year 3, and 900 hours in Year 4.
Required:
Determine the amount of depreciation expense for the years ended
December 31, Year 1, Year 2,...
Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $35,100. The...
Depreciation by Three Methods; Partial Years
Perdue Company purchased equipment on April 1 for $35,100. The
equipment was expected to have a useful life of three years, or
3,780 operating hours, and a residual value of $1,080. The
equipment was used for 700 hours during Year 1, 1,300 hours in Year
2, 1,100 hours in Year 3, and 680 hours in Year 4.
Required:
Determine the amount of depreciation expense for the years ended
December 31, Year 1, Year 2,...
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