For each depreciation method, prepare a depreciation schedule showing asset cost, depreciation expense, accumulated depreciation, and asset book value for each year of the asset's life. For the units-of-production method, round depreciation per unit to three decimal places.
There's the full question for reference. Here are my new values and information:
* More Info On January 3, 2016. Yang Enterprises, Inc., paid $234,500 for equipment used in manufacturing automotive supplies In addition to the basic purchase price, the company paid $700 transportation charges, $700 insurance for the equipment while in transit. $11,100 sales tax, and $3,000 for a special platform on which to place the equipment in the plant. Yang Enterprises, Inc., management estimates that the equipment will remain in service for five years and have a residual value of $25,000. The equipment will produce 60.000 units the first year, with annual production decreasing by 5,000 units during each of the next four years i.e., 55.000 units in year 2; 50,000 units in year 3; and so on for a total of 250.000 units). In trying to decide which depreciation method to use. Yang Enterprises, Inc., requested a depreciation schedule for each of the three depreciation methods (straight-line, units-of-production, and double-declining balance). Print Done Before completing the straight-line depreciation schedule, calculate the straight-line depreciation rate One year / Useful life = (SL) Depreciation rate 1/5 Complete the Straight-Line Depreciation Schedule. Begin by filling out the schedule through 2017, and then complete the schedule by entering the amounts through 2020. Straight-Line Depreciation Schedule Depreciation Depreciable Depreciation Rate Cost Expense Accumulated Depreciation 1/5 $ S Date Asset Cost January 3, 2016 $ 250,000 December 31, 2016 December 31, 2017 December 31, 2018 December 31, 2019 December 31, 2020 115 225,000 225.000 225.000 225.000 225.000 1/5 45,000 $ 45,000 45.000 45,000 45.000 Asset Book Value $ 250.000 205,000 160.000 115.000 70,000 25.000 45,000 90.000 135.000 180,000 225.000 Before completing the units-of-production (UOP) depreciation schedule, calculate the depreciation expense per unit. (Round depreciation per unit to three decimal places.) Depreciable cost $ 225.000 Total unit output 250.000 = = Depreciation per unit $ 0.900 Complete the Units-of-Production Depreciation Schedule. Begin by filling out the schedule through 2017, and then complete the schedule by entering the amounts through 2020. (Enter depreciation per unit to three decimal places.) Units-of-Production Depreciation Schedule Depreciation Number of Depreciation Accumulated Date Asset Cost Per Unit Units Expense Depreciation January 3, 2016 $ 250,000 December 31, 2016 0.900 60.000 S 54,000 $ 54,000 December 31, 2017 0.900 55.000 49,500 103,500 December 31, 2018 0.900 50.000 45,000 148,500 December 31, 2019 0.900 45.000 40,500 189.000 December 31, 2020 0.900 40.000 36,000 225.000 Asset Book Value S 250.000 190.000 146,500 101.500 61.000 25.000 Before completing the double-declining-balance (DDB) schedule, calculate the double-declining-balance rate SL Depreciation rate 1/5 X x DDB rate multiplier 2 = = DDB rate 2/5 Complete the Double-Declining-Balance Depreciation Schedule. Begin by filling out the schedule through 2017, and then complete the schedule by entering the amounts through 2020. Double-Declining-Balance (DDB) Depreciation Schedule DDB Asset Book Depreciation Accumulated Date Asset Cost Rate Value Expense Depreciation January 3, 2016 $ 250,000 December 31, 20161 215 $ 250.000 $ 100,000 $ 100.000 December 31, 2017 2/5 150.000 60,000 160,000 December 31, 2018 215 9 0.000 36,000 198,000 December 31, 2019 25T 54,000 21,600 217,600 December 31, 2020 32.400 7,400 225.000 Asset Book Value S 250.000 150.000 90.000 54,000 32,400 25.000 Requirement 3. Show how Yang Enterprises, Inc., would report equipment on the December 31, 2016. balance sheet for each depreciation method. December 31, 2016: SLUOP DDB Equipment s 250,000 250,000 250,000 Less: Accumulated depreciation - 45,000 54.000 100.000 Net equipment $ 205,000's 198,000 150,000 Requirement 1. For each depreciation method, prepare a depreciation schedule showing asset cost, depreciation expense, accumulated depreciation, and asset book value for each year of the asset's life. For the units-of-production method, round depreciation per unit to three decimal places. Before completing the straight-line depreciation schedule, calculate the straight-line depreciation rate. One year Useful life = (SL) Depreciation rate X - More Info On January 4, 2018, Blano Enterprises, Inc., paid $204.200 for equipment used in manufacturing automotive supplies. In addition to the basic purchase price, the company paid $300 transportation charges, $700 insurance for the equipment while in transit. $11.900 sales tax, and $2.900 for a special platform on which to place the equipment in the plant. Blano Enterprises, Inc., management estimates that the equipment will remain in service for five years and have a residual value of $20,000. The equipment will produce 60.000 units the first year, with annual production decreasing by 5,000 units during each of the next four years (i.e., 55.000 units in year 2: 50,000 units in year 3: and so on for a total of 250.000 units). In trying to decide which depreciation method to use, Blano Enterprises, Inc., requested a depreciation schedule for each of the three depreciation methods (straight-line, units-of-production, and double-declining balance) Print Done
