3 Freedom Co purchased a new machine on July 2, 2013, at a total installed cost of $40,000 The machine has an estimated life of five years and an estimated salvage value of $6,600 Required Calculate the depreciation expense for each year of the asset's life using a 1 Straight line depreciation Year Depreciation Expense 1 $ 2 $ 3 $ 4 $ 5 $ a 2 Double declining balance depreciation Year Depreciation Expense 1 $ 2 $ 3 $ 4 $ 5 $ a 3 150 declining balance depreciation Year Depreciation Expense 1 $ 2 $ 3 $ 4 $ 5 $ b How much depreciation expense should be recorded by Freedom Co for its fiscal year ended December 31, 2013, under each of the three methods ( Note The machine will have been used for one half of its first year of life ) Depreciation Expense Straight line $ Double Declining Balance $ 150 Declining Balance $ c Calculate the accumulated depreciation and net book value of the machine at December 31, 2014, under each of the three methods Cost Accumulated Depreciation Net Book Value Straight line $ $ $ Double declining balance $ $ $ 150 declining balance $ $ $

Question

3  Freedom Co  purchased a new machine on July 2, 2013, at a total installed cost of $40,000  The machine has an estimated life of five years and an estimated salvage value of $6,600  Required  Calculate the depreciation expense for each year of the asset's life using  a 1 Straight line depreciation  Year Depreciation Expense 1 $                    2 $                    3 $                    4 $                    5 $                    a 2 Double declining balance depreciation  Year Depreciation Expense 1 $                    2 $                    3 $                    4 $                    5 $                    a 3 150  declining balance depreciation  Year Depreciation Expense 1 $                    2 $                    3 $                    4 $                    5 $                    b  How much depreciation expense should be recorded by Freedom Co  for its fiscal year ended December 31, 2013, under each of the three methods  ( Note  The machine will have been used for one half of its first year of life ) Depreciation Expense Straight line $              Double Declining Balance $              150  Declining Balance $              c  Calculate the accumulated depreciation and net book value of the machine at December 31, 2014, under each of the three methods  Cost Accumulated Depreciation Net Book Value Straight line $                $                $                Double declining balance $                $                $                150  declining balance $                $                $

Accepted Answer

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Year	Depreciation Expense
1	$___________________
2	$___________________
3	$___________________
4	$___________________
5	$___________________

Year	Depreciation Expense
1	$___________________
2	$___________________
3	$___________________
4	$___________________
5	$___________________

Year	Depreciation Expense
1	$___________________
2	$___________________
3	$___________________
4	$___________________
5	$___________________

Depreciation Expense
Straight-line	$_____________
Double Declining Balance	$_____________
150% Declining Balance	$_____________

Question

3. Freedom Co. purchased a new machine on July 2, 2013, at a total installed cost of $40,000. The machine has an estimated life of

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b.	How much depreciation expense should be recorded by Freedom Co. for its fiscal year ended December 31, 2013, under each of the three methods? (Note: The machine will have been used for one-half of its first year of life.)

a.1	Straight-line depreciation.

a.2	Double-declining-balance depreciation.

a.3	150% declining-balance depreciation.