Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Cost Salvage Value Useful Life Units of Production Class Life Asset #1 $ 1,425,000 $ 125,000 5 2016 40,000 5 * Total units of 2017
Cost | Salvage Value | Useful Life | Units of Production | Class Life | ||||
Asset #1 | $ 1,425,000 | $ 125,000 | 5 | 2016 | 40,000 | 5 | * Total units of | |
2017 | 35,000 | output = 160,000 | ||||||
2018 | 38,000 | |||||||
Asset #2 | $ 890,000 | $ 75,000 | 7 | 2016 | 25,000 | 7 | * Total units of | |
2017 | 22,000 | output = 100,000 | ||||||
2018 | 19,000 | |||||||
Asset #3 | $ 975,000 | $ - | 10 | 2016 | 85,000 | 10 | *Total units of | |
2017 | 80,000 | output = 600,000 | ||||||
2018 | 78,000 | |||||||
The following depreciation methods will be used: (1) straight-line; (2) double-declining-balance; | ||||||||
(3) sum-of-the-years-digits; and (4) units-of-output. | ||||||||
Instructions: | ||||||||
(a) Calculate the annual depreciation for each of the three assets for each of the four depreciation | ||||||||
methods described above. Provide the depreciation expense for years 2016, 2017, and 2018. | ||||||||
To complete this, utilize Excel worksheets and tools to create a table that is easy to read, use | ||||||||
formulas and cell references where appropriate, and label the annual depreciation for each year. | ||||||||
Make sure all compenents are included such as depreciable cost, etc. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started