I need help with the below accounting questions. Thanks!
Depreciation by Two Methods A storage tank acquired at the beginning of the fiscal year at a cost of $115,200 has an estimated residual value of $7,000 and an estimated useful life of five years. a. Determine the amount of annual depreciation by the straight-line method. $- b. Determine the amount of depreciation for the rst and second years computed by the double-declining-balance method. Do not round the double-declining balance rate. If required, round your answers to the nearest dollar. Depreciation Yearl $ 46,080 V] Year2 $ 14,000 X Entries for Sale of Fixed Asset Equipment acquired on January 5 at a cost of $134,550, has an estimated useful life of 16 years, has an estimated residual value of $9,750, and is depreciated by the straightline method. a. What was the book value of the equipment at December 31 the end of the fourth year? 55:] b. Assuming that the equipment was sold on April 1 of the fifth year for 96,395. 1. Journalize the entry to record depreciation for the three months until the sale date. Round your answers to the nerest whole dollar if required. 'C] D l 2. Journalize the entry to record the sale of the equipment. If an amount box does not require an entry, leave it blank. Do not round intermediate calculations. V SEED DDDD Equipment acquired on January 6 at a cost of $434,700, has an estimated useful life of 9 years and an estimated residual value of $56,700. a. What was the annual amount of depreciation for the Years 13 using the straightline method of depreciation? Year Depreciation Expense $:1 Year 2 $ b. What was the book value of the equipment on January 1 of Year 4? 35[:1 Year 3 1% c. Assuming that the equipment was sold on January 3 of Year 4 for $293,300, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. 4444 DEED DUDE d. Assuming that the equipment had been sold on January 3 of Year 4 for $314,900 instead of $293,300, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. 'SC] 'EC] 'l:]l:] 'lll Comparing Three Depreciation Methods Waylander Coatings Company purchased waterproong equipment on January 6 for $630,000. The equipment was expected to have a useful life of four years, or 6,800 operating hours, and a residual value of $52,000. The equipment was used for 2,600 hours during Year 1, 2,100 hours in Year 2, 1,200 hours in Year 3, and 900 hours in Year 4. Required: 1. Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straightline method, (b) the units-ofoutput method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the four years by each method. Note: FOR DECLINING BALANCE ONLY, round the multiplier to four decimal places. Then round the answer for each year to the nearest whole dollar. Depreciation Expense Year Straight-Line Method Unitsof-Output Method Double-Declining-Balance Method Year 2 $:] $:] $:] Year 4 $:] $:] $:] 2. What method yields the highest depreciation expense for Year 1? v 3. What method yields the most depreciation over the four-year life of the equipment? v
