Question
Chapter 17 Check-in Questions: 1. Calculate the total cost, depreciation, and annual depreciation for 25 Blenders and an Industrial refrigerator using the straight-line method. Cost
Chapter 17 Check-in Questions:
1. Calculate the total cost, depreciation, and annual depreciation for 25 Blenders and an Industrial refrigerator using the straight-line method.
| Cost | Shipping Charges | Setup Charge | Total Cost | Salvage Value | Estimated Useful Life (years) | Depreciation |
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| Total | Annual | ||||||
A | $5,600 | $210 | $54 | $600 | 6 | |||
B | $16,900 | $310 | 0 | $1900 | 4 |
2. Mikes Bikes decided on a new fleet of new delivery vans totaling $148,000. Delivery charges were $2,200, and installation of their high-capacity refrigerators amounted to $1,800. The equipment is expected to last four years and has a residual value of $3,000. If the company elects to use the straight-line depreciation method, prepare a depreciation schedule for these assets.
Sienna's Health & Fitness | |||
Straight-Line Depreciation Schedule | |||
Manufacturing Equipment | |||
End of Year | Annual Depreciation | Accumulated Depreciation | Book Value |
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- Sienna's Healthy bought a computerized engraving machine for personalized weight belts for $33,800. It is expected to have a 5-year useful life and a trade-in value of $2,700. Prepare a depreciation schedule for the first three years using the machine's 150% declining balance method.
Sienna's Health & Fitness |
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Declining Balance Schedule |
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End of Year | Beginning Book Value | Depreciation Rate | Depreciation for the year | Accumulate Depreciation | Ending Book Value |
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4. Complete the following as they relate to the units-of-production method of depreciation. For two pieces of equipment Sienna needed for her business office. Round answers to the nearest tenth of a cent.
| Asset | Cost | Salvage Value | Units of Useful Life | Depreciation per Unit |
A | Irrigation Pump | $8,900 | $250 | 500,000 Gallons |
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B | Copier | $3,900 | 0 | 160,000 copies |
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