M$9\_$Depreclation$\_$Worksheet $-$ Saved to my Mac

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Deprectatton Asetgmment

Use this file to show all calculations in each table and fill in your final answer in the yellow box$($s$).$ The boxes will expand to give you more space if you feel you need it$.$

Sample opestion

A piece of equipment is purchased on January $1,2019$ for $$10,000.$ It is expected to last for five years. The expected value at the end of five years will be $$500.$

a$.$ What is the yearly depreciation for each of the five years?

$10,000-\frac{500}{5}=$

b$.$ What is the value of the equipment on December $31$ of Year $3?$

$\backslash$table$[[19003=5,700,10,000-5,700=,4,300]]$

BATT.

The Curtis Cleaning Company commenced business on January $1,2019$ and has a fiscal year$-$end of December $31.$

Question $1-$ Stralght Ithe Method

$2$ marks

An automobile was purchased on January $1,2019,$ for $$36,000.$ It is expected to last for five full years. The expected trade in value is $$4,000.$

a$.$ What is the yearly depreciation amount for cach of the first five years?

$$

b$.$ What is the value of the automobile on December $31$ of Year $3?$

$$

Question $2-$Stralght Ime Mothod

$2$ marks

A used truck was purchased on October $1,2019,$ for $$5,800.$ It was expected to last four fill years. The expected trade$-$in value is $$1,000.$ Keep in mind that this asset was purchased wihin the last three months of the first year of the business.

a$.$ What is the yeany depreciation amount for cach of the first four yeare?

$$

b$.$ What is the value of the truck on December $31$ of Year $8$P

$$

Accessibility: InvestigateCrestion $3-$Straight Mine Method

$2$ marks

A new building was purchased on May $1,2019,$ for the sum of $$113,000.$ It was expected to last for $25$ years, at which time it would have a resale value of $$5,000.$ Again, notice that this asset was purchased part$-$way into the first year of the business.

a$.$ What is the yearly depreciation amount for each of the first five years?

b$.$ What is the value of the building on December $31$ of Year $3?$

Question $4-$ Deofining Balance Moahod

$5$ marks

New equigment is purchased on January $1,2019,$ for $$58,000.$ Tying a difierent method for determining depreciation, the accountant uses the deolining balance mothod at a rate of $20\%.$

a$.$ What is the yearly degreciation amount for each of the first five years?

$\backslash$table$[[$Yeard$,],[$Year $2,],[$Year $3,],[$Year $4,],[$Year $5,]]$

b$.$ What is the value of this gquipment on Degember st of Yean sp $$Prestion $5-$Deolining Balance Method

$5$ marks

A new building was bought on July $1,2019,$ for $$282,000\mathrm{.}00.$ It is clepreciated using the deatining balamce method at the rate of $5\%.$ Note the date of purchase of the building.

a$.$ What is the yearly depreciation amount for each of the first five years?

$\backslash$table$[[$Year $1,],[$Year $2,],[$Year $3,],[$Year $4,],[$Year $5,]]$

b$.$ What is the value of this building on December $31$ of Year $3?$

Part $B$

The Wyle D$.$ Acme Company purchased new equipment on January $1,2019$ for $$65,000,$ which it expects to last for seven years, and to have a salvage value of $$5,500.$

Complete the equipment depreciation schedult shown below for the first five years of the asset's life showing depreciation calculated with each of the straight$-$line method and the declining balance method $($at a rate of $20\%).$

Show an caloulotions. Zou may show your calentations on the following pars but your answers shoutd be placed in the tahlo beloun.

$\backslash$table$[[,,],[,$Bungingme,Degiming :$],[$reart$],[$rem$?],[$Yers $8],[$Persi$],[$rems $5],[],[,,]]$

$6$ marksStratomumocolontation

$2.$ Comment and erpiain ary cmlenifted cirrerences that may ohow between the two methods.