Computing Straight-Line and Double-Declining-Balance Depreciation On January 2, Haskins Company purchases a laser cutting machine for use
Question:
Computing Straight-Line and Double-Declining-Balance Depreciation
On January 2, Haskins Company purchases a laser cutting machine for use in fabrication of a part for one of its key products. The machine cost $80,000, and its estimated useful life is five years, after which the expected salvage value is $5,000. For both parts (a) and (b) below: (1) Compute depreciation expense for each year of the machine's five-year useful life under that depreciation method. (2) Use the financial statements effects template to show the effect of depreciation for the first year only for that method.
(a) Straight-line
$Answer
per year
Use negative signs with your answers below, when appropriate.
Balance Sheet
TransactionCash Asset+Noncash
Assets
=Liabilities+Contributed
Capital
+Earned
Capital
Record firstyear depreciation Answer
Answer
Answer
Answer
Answer
Income Statement
Revenue
-
Expenses
=Net
Income
Answer
Answer
Answer
(b) Double-declining
YearDepreciation Expense 1 Answer
2 Answer
3 Answer
4 Answer
5 Answer
Expert Answer:
