IE8-1 Computing the Acquisition Cost, Identifying Capital Expenditures, and Recording Depreciation with a Partial Year under Three Alternative Methods

Romero & Kiplinger recently purchased some capital assets and would like to project depreciation amounts. Information about the assets are below:

Milling Machine
Date Purchased	01-Apr
Cost	$ 78,523
Repairs before first use	$ 3,956
Useful Life	10	years
Salavage Value	$ 6,859
Depreciation Method	Straight Line

Forklift
Date purchased	01-Oct
Cost	$ 34,587
Protection Plan	$ 3,250
Gasoline	$ 280
Useful Life	15	years
Salvage Value	$ 6,500
Depreciation Method	Units of Production (hours)
Estimated Total Hours	28,000
Year 1 Hours	1,610
Year 2 Hours	3,150
Year 3 Hours	2,471
Year 4 Hours	2,985
Year 5 Hours	3,100
Year 6 Hours	2,582
Year 7 Hours	2,584
Year 8 Hours	3,621
Year 9 Hours	2,574
Year 10 Hours	2,353
Year 11 Hours	970

Supercomputer
Date Purchased	01-Jul
Cost	$ 126,874
Annual Maintenance fee	$ 450
Useful Life	8	years
Salvage Value	$ 27,000
Depreciation Method	Double-Declining Balance

Required:

Complete the depreciation schedules in the spreadsheet for each of these assets.

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