Chapter 8 AC200

Chapter 8 assignment part 1 Problem 1 Cost $ 150,000 Estimated Useful life(years) Estimated Units 200,000 Salvage Value 25,000 Show the Journasl entries for Years 1-5 to book depreciation for the following methods: 1. Straight line Method 42. Double Declining Balance 3. Units of of Production (Assume units are y1= 70,000, Y2, 50,000, Y3 30,000, y4 25,000, Y5 25000). Problem 2 For the same information in problem 1, assume that after 2 years and at the beginning of year 3 you revise your estimates so that now you expect the item to last 6 years and after 6 years you expect the salvage value to be 15,000. Show the depreciation journal entries for all 6 years using only the straight line method