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Can you please help with the the first part of A and parts D & E? Thank you! 5 Computing Depreciation Using Various Depreciation Methods
Can you please help with the the first part of A and parts D & E? Thank you!
5 Computing Depreciation Using Various Depreciation Methods To demonstrate the computations involved in several methods of depreciating a fixed asset, the following data are used for equipment purchased on January 1, 2020. Cost and residual value Estimated service life: Acquisition cost $12.500 Years Residual value $500 Service hours 10,000 Productive output (units) 24,000 Required Compute annual depreciation using each of the following methods. a. Straight-line depreciation: Compute the depreciation rate and amount for each year. Depreciation Rate 19.2 X 2020 2021 2022 2023 2024 Depreciation Expense $ 2,400$ 2,400 $ 2,400$ 2,400$ 2,400 b. Units-of-production method using service hours as a measure of input: Compute the depreciation rate and amount of depreciation expense for the first year assuming 2,200 service hours of actual operation. Depreciation Rate 1.2 2020 2,640 Depreciation Expense c. Units-of-production method using units produced as a measure of output: Compute the depreciation rate and amount of depreciation expense for the first year assuming 4,000 units of output. Depreciation Rate 0.5 2020 Depreciation Expense $ 2.000 d. Sum-of-the-years'-digits method: Compute the depreciation amount for each year. 2020 2021 2022 2023 2024 $ 3.999.6 x $ 3,200.4 X $ 2,400 $ 1,559.6 x $ 800.4 X e. Double-declining-balance method: Compute the depreciation amount for each year. 2020 2021 2022 2023 2024 $ Ox $ 0X $ 0 x $ 0X $ OXStep by Step Solution
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