Question
Bramble Corporation purchased machinery on January 1, 2022, at a cost of $256,000. The estimated useful life of the machinery is 4 years, with an
Bramble Corporation purchased machinery on January 1, 2022, at a cost of $256,000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of $30,600. The company is considering different depreciation methods that could be used for financial reporting purposes.
(a)
Partially correct answer iconYour answer is partially correct.
Prepare separate depreciation schedules for the machinery using the straight-line method, and the declining-balance method using double the straight-line rate.
STRAIGHT-LINE DEPRECIATION | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Computation | End of Year | ||||||||||
Years | Depreciable Cost | x | Depreciation Rate | = | Annual Depreciation Expense | Accumulated Depreciation | Book Value | ||||
2022 | $enter a dollar amount | enter a Depreciation Rate in percentages | % | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | |||||
2023 | enter a dollar amount | enter a Depreciation Rate in percentages | % | enter a dollar amount | enter a dollar amount | enter a dollar amount | |||||
2024 | enter a dollar amount | enter a Depreciation Rate in percentages | % | enter a dollar amount | enter a dollar amount | enter a dollar amount | |||||
2025 | enter a dollar amount | enter a Depreciation Rate in percentages | % | enter a dollar amount | enter a dollar amount | enter a dollar amount | |||||
$enter a total for the Annual Depreciation Expense column in dollars |
DOUBLE-DECLINING-BALANCE DEPRECIATION | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Computation | End of Year | ||||||||||
Years | Book Value Beginning of Year | Depreciation Rate | = | Annual Depreciation Expense | Accumulated Depreciation | Book Value | |||||
2022 | $enter a dollar amount | enter a Depreciation Rate in percentages | % | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | |||||
2023 | enter a dollar amount | enter a Depreciation Rate in percentages | % | enter a dollar amount | enter a dollar amount | enter a dollar amount | |||||
2024 | enter a dollar amount | enter a Depreciation Rate in percentages | % | enter a dollar amount | enter a dollar amount | enter a dollar amount | |||||
2025 | enter a dollar amount | enter a Depreciation Rate in percentages | % | 1,400 | * | enter a dollar amount | enter a dollar amount | ||||
$enter a total for the Annual Depreciation Expense column in dollars |
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