DEPRECIATION CALCULATIONS CHERYLL'S FURNITURE COMPANY For the Year Ended December 31, 2020 Asset Acquisition The following Assets were acquired on January 1, 2020 by Cheryll's Furniture Company during the current year: Estimated Estimated Useful Salvage ASSET Life TOTAL COST Valuc Computer System 5 Years $115.000 $12,500 Manufacturing Equipment 6 Years 300.000 30,000 Delivery Truck 4 Years 55,000 7,500 Total $470,000 * - Estimated Useful Life In Activity as follows: Computer System 100,000 Hours Manufacturing Equipment 20.000 Hours Delivery Truck 200,000 Miles REQUIRED 1. Calculate Depreciation Expense for the first three (3) years for each Asset Using the following Depreciation Methods: (a) STRAIGHT-LINE METHOD (b) DOUBLE DECLINING-BALANCE METHOD (c) ACTIVITY-BASED (UNITS OF PRODUCTION) METHOD ASSET ACTIVITY Computer System Year 1 - 12.000 Hours: Year 2 - 16,000 Hours: Year_3 - 20,000 Hours Manufacturing Equipment Year 1 - 2,400 Hours: Year 2 - 3,200 Hours: Year 3 - 4,800 Hours Delivery Truck Year 1 - 68.400 Miles: Year 2 - 83,200 Miles: Year 3 - 48,400 Miles 2. Make the Year-End Journal Entry (Adjusting Entry) for YEAR I ONLY for each of the three (3) Depreciation Methods (One (1) Single Journal Entry Only For Each Depreciation Method) CHERYLL'S FURNITURE COMPANY For the Year Ended December 31, 2020 Come System Manung Equipment Delivery Truck STRAIGHT-LINE METHOD YEAR! YEAR 2 YEAR 3 DOUBLE DECLINING-BALANCE METHOD YEAR1 YEAR 2 YEAR: ACTIVITY-BASED UNITS OF PRODUCTION) METHOD YEAR YEAR 2 YEAR 3 For The Year Ended December 31, 2020 Date Accounts Description Debits Credits STRAIGHT-LINE DEPRECIATION December 31, 2020 Depreciation Expense Accumulated Depreciation DOUBLE DECLINING-BALANCE DEPRECATION December 11, 2020 Depreciation Expense Accumulated Depreciation ACTIVITY-BASED UNITS OF PRODUCTION DEPRECIATION December 31, 2020 Depreciation Expense Accumulated Depreciation