A B D E F Problem #5 On January 5, 2018 Bobby Wino, Inc. purchased a mondo laserized pizza oven for which the following information is available: Original cost............... Estimated residual value....... Useful life in years.......... Useful life expressed in operating hours $750,000 $30,000 8 24,000 years hours Calculate the following The depreciable base. 37 38 The annual depreciation using the straight line method. 39 The accumulated depreciation at December 31, 2019 (end of second year) if straight line (S/L) depreciation is used. 40 The book value of the equip. on Dec. 31, 2019 if S/L deprec. is used 41 The depreciation for year 2020 assuming the equipment is sold on May 31, 2020 and the straight line method is used. 42 The book value of the equip. on May 31, 2020 if S/L deprec. is used Sheet1 P18 TX Formattin A D E 173 43 F B The amount of the gain or loss (INDICATE GAIN or LOSS and AMOUNT) resulting if the equipment is sold for --> 432,500 on May 31, 2020 and S/L depreciation is used. 44 The SECOND year (2019) depreciation if double declining balance is used. 45 The accumulated depreciation at December 31, 2019 (end of second year) if double declining balance (DDB) is used. 46 The book value of the equipment on December 31, 2019 assuming double declining balance is employed. 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 47 The depreciation for year 2020 assuming the equipment is sold on September 30, 2020 and double declining balance is used. 48 The gain or loss (INDICATE WHICH) which would result if the equip. is sold for $ 382,773 on September 30, 2020 and DDB is used. 49 The SECOND year (2019) depreciation if sum of the years digits is used 50 The accumulated depreciation at December 31, 2019 (end of second year) if sum of the years digits is used 51 The book value of the equipment on December 31, 2019 assuming sum of the years digits is used. Sheet1 E assuming sum of the years digits is used. 52 53 The first year depreciation if units of output is used and the equip. is operated for 2900 hours in 2018. The accumulated depreciation at December 31, 2019 (end of second year) units of output is used and the equipment was operated for another 2700 hours in 2019. The book value of the equip. on December 31, 2019 if units of output is used. (Equipment operated 2900 hrs in 2018, 2700 hrs in 2019) The depreciation for year 2020 assuming the equipment is sold on September 30, 2020 and is operated for 2,300 hours in 2020. (assuming the units of output method is used) 54 55 56 The book value of the equipment assuming the facts in #55
