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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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