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need help filling in the rest of the blanks Depreciation Expense a. b. Straight- Units of Line Production C. Double-Declining- Balance Year $ $ $
need help filling in the rest of the blanks
Depreciation Expense a. b. Straight- Units of Line Production C. Double-Declining- Balance Year $ $ $ 2014 2015 2016 Totals 28,000 28,000 28.000 84,000 37,380 29,820 16,800 84.000 60,000 20,000 4,000 84,000 $ $ $ Calculations: + Straight-line method: (Cost Residual Value) $ 90,000 $ 6,000 Years 3 Yearly Depreciation $ 28,000 Units-of-production method: (Cost Residual Value) $ 90,000 $ 6,000 Total Hours Rate Rate Hours 2014 2015 2016 Yearly Depreciation $ 37,380 29.820 16,800 olu Double-declining-balance method: Depreciable Balance Rate Yearly Depreciation 2014 $ 90.000 2015 Since depreciation cannot cause book value to fall below residual value: Depreciable Balance Residual Value Yearly Depreciation 2016 1 2 2. OBJ. 2 V1.2.2014: straight- line depreciation, $28,000 PR 10-2A Comparing three depreciation methods Monte's Coffee Company purchased packaging equipment on January 5, 2014, for $90,000. The equipment was expected to have a useful life of three years, or 20,000 operating hours, and a residual value of $6,000. The equipment was used for 8,900 hours during 2014, 7,100 hours in 2015, and 4,000 hours in 2016. Instructions 1. Determine the amount of depreciation expense for the years ended December 31, 2014, 2015, and 2016 by (a) the straight-line method, (b) the units-of-output method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the three years by each method. The following columnar headings are suggested for recording the depreciation expense amounts: SHOW ME HOW Straight- Line Method Depreciation Expense Units-of- Double-Declining Output Balance Method Method Year Va.2014: 565,250 2. What method yields the highest depreciation expense for 2014? 3. What method yields the most depreciation over the three-year life of the equipment? PR 10-3A Depreciation by three methods; partial years OBJ. 2 Perdue Company purchased equipment on April 1, 2014, for $270,000. The equipment was expected to have a useful life of three years, or 18,000 operating hours, and a residual value of $9,000. The equipment was used for 7,500 hours during 2014, 5,500 hours in 2015, 4,000 hours in 2016, and 1,000 hours in 2017. Instructions Determine the amount of depreciation expense for the years ended December 31, 2014, 2015, 2016, and 2017, by (a) the straight-line method, (b) the units-of-output method, and (c) the double-declining-balance method Step by Step Solution
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