Requirement 1. For each depreciation method, prepare a depreciation schedule showing asset cost, depreciation expense, accumulated...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Requirement 1. For each depreciation method, prepare a depreciation schedule showing asset cost, depreciation expense, accumulated depreciation, and asset book value for each year of the asset's life. For the units of production method, round depreciation per unit to three decimal places. Before completing the straight-line depreciation schedule, calculate the straight-line depreciation rate. One year 1 Useful life = (SL) Depreciation rate Complete the Straight-Line Depreciation Schedule. Begin by filling out the schedule through 2019, and then complete the schedule by entering the amounts through 2022. Date January 4, 2018 December 31, 2018 December 31, 2019 December 31, 2020 December 31, 2021 December 31, 2022 Asset Cost Straight-Line Depreciation Schedule Depreciation Depreciable Depreciation Accumulated Cost Expense Depreciation Book Value Rate Asset Before completing the units of production (UOP) depreciation schedule, calculate the depreciation expense per unit. (Round depreciation per unit to three decimal places.) Depreciable cost Total unit output Date January 4, 2018 December 31, 2018 December 31, 2019 December 31, 2020 December 31, 2021 December 31, 2022 = Depreciation per unit Complete the Units of Production Depreciation Schedule. Begin by filling out the schedule through 2019, and then complete the schedule by entering the amounts through 2022. (Enter depreciation per unit to three decimal places.) = Asset Cost Units of Production Depreciation Schedule Depreciation Number of Depreciation Expense Per Unit Units Accumulated Depreciation Book Value Asset Before completing the double-declining balance (DDB) schedule, calculate the double-declining balance rate. SL Depreciation rate X X DDB rate multiplier Date January 4, 2018 December 31, 2018 December 31, 2019 December 31, 2020 December 31, 2021 December 31, 2022 Complete the Double-Declining Balance Depreciation Schedule. Begin by filling out the schedule through 2019, and then complete the schedule by entering the amounts through 2022. DDB rate Double-Declining Balance (DDB) Depreciation Schedule Asset Cost DDB Rate Asset Book Depreciation Accumulated Expense Value Asset Depreciation Book Value Requirement 2. Chyler Enterprises, Inc., prepares financial statements using the depreciation method that reports the highest income in the early years of asset use. For income tax purposes, the company uses the depreciation method that minimizes income taxes in the early years. Consider the first year Chyler Enterprises, Inc., uses the equipment. Identify the depreciation methods that meet Chyler Enterprises' objectives, assuming the income tax authorities permit the use of any method. The depreciation method that maximizes reported net income in the first year of the computer's life is the the depreciation for that year. The method that minimizes income taxes in the first year is the the depreciation amount for that year. Requirement 3. Show how Chyler Enterprises, Inc., would report equipment on the December 31, 2018, balance sheet for each depreciation method. UOP DDB December 31, 2018: method, which produces method, which produces SL re Info pre info On January 4, 2018, Chyler Enterprises, Inc., paid $234,400 for equipment used in manufacturing automotive supplies. In addition to the basic purchase price, the company paid $600 for transportation charges, $1,100 for insurance for the equipment while in transit, $11,000 sales tax, and $2,900 for a special platform on which to place the equipment in the plant. Management of Chyler Enterprises, Inc., estimates that the equipment will remain in service for five years and have a residual value of $25,000. The equipment will produce 60,000 units the first year, with annual production decreasing by 5,000 units during each of the next four years (i.e., 55,000 units in year 2; 50,000 units in year 3; and so on, for a total of 250,000 units). In trying to decide which depreciation method to use, Chyler Enterprises, Inc., requested a depreciation schedule for each of the three depreciation methods (straight-line, units of production, and double-declining balance). Requirement 1. For each depreciation method, prepare a depreciation schedule showing asset cost, depreciation expense, accumulated depreciation, and asset book value for each year of the asset's life. For the units of production method, round depreciation per unit to three decimal places. Before completing the straight-line depreciation schedule, calculate the straight-line depreciation rate. One year 1 Useful life = (SL) Depreciation rate Complete the Straight-Line Depreciation Schedule. Begin by filling out the schedule through 2019, and then complete the schedule by entering the amounts through 2022. Date January 4, 2018 December 31, 2018 December 31, 2019 December 31, 2020 December 31, 2021 December 31, 2022 Asset Cost Straight-Line Depreciation Schedule Depreciation Depreciable Depreciation Accumulated Cost Expense Depreciation Book Value Rate Asset Before completing the units of production (UOP) depreciation schedule, calculate the depreciation expense per unit. (Round depreciation per unit to three decimal places.) Depreciable cost Total unit output Date January 4, 2018 December 31, 2018 December 31, 2019 December 31, 2020 December 31, 2021 December 31, 2022 = Depreciation per unit Complete the Units of Production Depreciation Schedule. Begin by filling out the schedule through 2019, and then complete the schedule by entering the amounts through 2022. (Enter depreciation per unit to three decimal places.) = Asset Cost Units of Production Depreciation Schedule Depreciation Number of Depreciation Expense Per Unit Units Accumulated Depreciation Book Value Asset Before completing the double-declining balance (DDB) schedule, calculate the double-declining balance rate. SL Depreciation rate X X DDB rate multiplier Date January 4, 2018 December 31, 2018 December 31, 2019 December 31, 2020 December 31, 2021 December 31, 2022 Complete the Double-Declining Balance Depreciation Schedule. Begin by filling out the schedule through 2019, and then complete the schedule by entering the amounts through 2022. DDB rate Double-Declining Balance (DDB) Depreciation Schedule Asset Cost DDB Rate Asset Book Depreciation Accumulated Expense Value Asset Depreciation Book Value Requirement 2. Chyler Enterprises, Inc., prepares financial statements using the depreciation method that reports the highest income in the early years of asset use. For income tax purposes, the company uses the depreciation method that minimizes income taxes in the early years. Consider the first year Chyler Enterprises, Inc., uses the equipment. Identify the depreciation methods that meet Chyler Enterprises' objectives, assuming the income tax authorities permit the use of any method. The depreciation method that maximizes reported net income in the first year of the computer's life is the the depreciation for that year. The method that minimizes income taxes in the first year is the the depreciation amount for that year. Requirement 3. Show how Chyler Enterprises, Inc., would report equipment on the December 31, 2018, balance sheet for each depreciation method. UOP DDB December 31, 2018: method, which produces method, which produces SL re Info pre info On January 4, 2018, Chyler Enterprises, Inc., paid $234,400 for equipment used in manufacturing automotive supplies. In addition to the basic purchase price, the company paid $600 for transportation charges, $1,100 for insurance for the equipment while in transit, $11,000 sales tax, and $2,900 for a special platform on which to place the equipment in the plant. Management of Chyler Enterprises, Inc., estimates that the equipment will remain in service for five years and have a residual value of $25,000. The equipment will produce 60,000 units the first year, with annual production decreasing by 5,000 units during each of the next four years (i.e., 55,000 units in year 2; 50,000 units in year 3; and so on, for a total of 250,000 units). In trying to decide which depreciation method to use, Chyler Enterprises, Inc., requested a depreciation schedule for each of the three depreciation methods (straight-line, units of production, and double-declining balance).
Expert Answer:
Answer rating: 100% (QA)
Requirement 1 Depreciation Schedules 1 StraightLine Depreciation a Depreciation Rate Useful Life SL ... View the full answer
Related Book For
Posted Date:
Students also viewed these finance questions
-
Taveras Corporation is currently operating at 50% of its available manufacturing capacity. It uses a job-order costing system with a plant wide predetermined overhead rate based on machine-hours. At...
-
Given an ellipse with major axis of length 2a and minor axis of length 26, the area is given by A = ab. The perimeter is approximated by P2(a + b). (x-3)2 For 16 + 2 13 1, (a) Determine the area of...
-
Speedy Auto Repairs uses a job-order costing system. The company's direct materials consist of replacement parts installed in customer vehicles, and its direct labor consists of the mechanics' hourly...
-
What effect does a weakening in U.S dollar have on Net Income for subsidiaries of U.S companies?
-
Why do overhead costs often shift from high volume products when a company switches from a conventional costing method to activity based costing?
-
a) Financial institutions in Malaysia face different types of risks. Briefly explain THREE (3) risks common to financial institutions. b) Fed (Bank Negara Malaysia) uses THREE (3) tools to control...
-
Part 1: Calculating Short-Term Measurements The following annual information is available for Lakewood Industries, an investment center: a. Calculate ROI (return on investment). Base your...
-
Equity Investment on July 1, 2010, Selig Company purchased for cash 40% of the outstanding capital stock of Spoor Corporation. Both Selig and Spoor have a December 31 year-end. Spoor Corporation,...
-
The Harvard Implicit Bias test is a well known tool for learning about implicit bias. It is not just one test, but many, each focusing on different types of possible bias. Go to...
-
Sage Learning Centers was established on July 20, 2016, to provide educational services. The services provided during the remainder of the month are as follows: July 21. Issued Invoice No. 1 to J....
-
Context In 2015 college students at a large state university completed a survey about their academic and personal life. Questions ranged from "How many credits are you registered for this semester?"...
-
How does an auditor test the valuation of investment securities?
-
What is the primary source document for an auditor's tests of billing?
-
Many organizations maintain separate bank accounts for payroll, thereby segregating all payroll disbursements from general disbursements, such as payments for purchases, inventory, plant assets, and...
-
How can management control against misplaced or misused inventory?
-
Explain how an auditor tests the existence of investments recorded within a client's financial statements.
-
Consider independent observations y_(1), dots, y_(n) from the model Y_(i)~ Poisson (mu). Using likelihood L(mu) and loglikelihood I(mu) as appropriate, compute the following items. Derive the maximum...
-
A Alkynes can be made by dehydrohalogenation of vinylic halides in a reaction that is essentially an E2 process. In studying the stereochemistry of this elimination, it was found that...
-
The Inventory account for Kelly's Florist, Inc., had a balance of $27,300 at the end of its fiscal year. A physical count taken at year-end revealed that the value of inventory on hand amounted to...
-
The 2016 accounting records of Sullivan, Inc., showed the following: Cash, $14,400; Net Accounts Receivable, $5,600; Inventory, $23,200; Prepaid Expenses, $2,400; Net Plant and Equipment, $34,400....
-
Akaman Auto, Inc., is authorized to issue 600,000,000 shares of $10 par common stock. The company issued 70,000 shares at $12 per share, and all 70,000 shares are outstanding. When the market price...
-
Sampras Sporting Goods Company manufactures two types of tennis rackets, the Junior and Pro-Striker models. The production budget for November for the two rackets is as follows: Junior Pro-Striker...
-
Vision Systems Inc. was organized on May 31, 2002. Rrojected selling and administrative expenses for each of the first three months of operations are as follows: Depreciation, insurance, and property...
-
Mann Company was organized on March 1 of the current year. Projected sales for each of the first three months of operations are as follows: The company expects to sell 20% of its merchandise for...
Study smarter with the SolutionInn App