OBJ. 2 3 456 PE 10-3A Units-of-output depreciation A tractor acquired at a cost of $275,000 has an estimated residual value of $39,000, has an estimated useful life of 40,000 hours, and was operated 2,660 hours during the year Determine (a) the depreciable cost, (b) the depreciation rate, and (c) the units-of-output depreciation for the year. Format Painter Number Alignment Font Clipboard E20 J K H. A B 1 Problem 10-3A For use with Accounting, 25e Name: and Section: 4. Financial Accounting, 13e by 0% Score: Warren/Reeve/Duchac 6. Key Code 8 Instructions 9 Answers are entered in the cells with gray backgrounds. 10 Cells with non-gray backgrounds are protected and cannot be edited. 11 An asterisk (") will appear to the right of an incorrect entry. [Key code here] 7. 12 13 14 Depreciation Expense 15 16 b. C. a. Double-Declining- Balance Units of Straight- Line 17 Production Year 18 19 2012 20 2013 21 2014 22 2015 23 Totals 24 25 26 Calculations: Pr. 10-3A Ready D. Arial B Copy $- % 9 E Merge & Center EEE EE A Paste BIU Format Painter Numben Alignment Font Clipboard E20 14 15 16 17 Depreciation Expense b. C. a. Double-Declining- Units of Straight- Line Balance Production Year 18 19 2012 20 2013 21 2014 22 2015 23 Totals 24 25 Calculations: 26 27 Straight-line method: For full year: 28 29 Yearly Depreciation Years Residual Value) (Cost 30 31 For part years: 33 Depreciation 2012 Depreciation x Portion of Year 34 35 36 Depreciation 2015 Depreciation x Portion of Year 37 38 Pr. 10-3A Ready K Depreciation 2015 Depreciation x Portion of Year Units-of-production method: (Cost Rate Total Hours Residual Value) Yearly Depreciation Hours Rate 2012 -5 2013 16 2014 47 2015 48 49 Double-declining-balance method: 50 Yearly Depreciation Depreciable 51 Portion of Year Rate Balance 52 2012 53 2013 54 2014 55 Since depreciation cannot cause book value to falt below residual value: 56 Residual 57 Depreciable Yearly Depreciation Value Balance 58 2015 59 60 Pr. 10-3A Ready