Question
In excel format, please answer the following question: Question #4 On January 1 st , a company purchased equipment which will fabricate plastic parts automatically.
In excel format, please answer the following question:
Question #4
On January 1st, a company purchased equipment which will fabricate plastic parts automatically. This equipment costs $81,000 and is expected to have an economic/useful life of three (3) years. This equipment is expected to produce 7,000 parts in year 1, 10,000 parts in year 2, then 8,000 parts in year 3. At the end of year 3, the estimated salvage value/residual value of the equipment is $6,000.
Part ( a )
Complete the following table using double-declining-balance (DDB) depreciation:
Beginning Ending
Year Book Value DDB Factor Depreciation Exp. Book Value
1 __________ __________ ____________ __________
2 __________ __________ ____________ __________
3 __________ __________ ____________ __________
Part ( b )
What is the annual adjusting entry (DR/CR) when straight-line depreciation is used, assuming adjusting entries are done only at the end of the year?
Part ( c )
What is the ending book value at the end of each year when the units-of-output depreciation method is used?
Year 1 ending book value __________
Year 2 ending book value __________
Year 3 ending book value __________
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