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On January 3, 2018, Pawnee Company paid $230,000 for a computer system. In addition to the basic purchase price, the company paid a setup fee
On January 3, 2018, Pawnee Company paid $230,000 for a computer system. In addition to the basic purchase price, the company paid a setup fee of $1,000, sales tax of $6.000, and $28,000 for a special platform on which to place the computer. Pawnee's management estimates that the computer will remain in service for five years and have a residual value of $15,000. The computer will process 30,000 documents the first year, with annual processing decreasing by 2,500 documents during each of the next four years that is, 27,500 documents in 2019:25,000 documents in 2020; and so on). For help with deciding which depreciation method to use, the company president has requested a depreciation schedule for each of the three depreciation methods. If rounding is necessary, use two decimal places for the depreciation amount per document. Read the requirements. Depreciable Yearly Accumulated Date Cost Rate Cost Expense Depreciation Book Value January 3, 2018 265,000 S 265,000 December 31, 2018 0.20 $ 250,000 $ 50,000 $ 50,000 215,000 December 31, 2019 0.20 250,000 50,000 100,000 165,000 December 31, 2020 0.20 250,000 50,000 150.000 115,000 December 31, 2021 0.20 250,000 50,000 200,000 65,000 December 31, 2022 0.20 250,000 50,000 250,000 15,000 2 Complete the units-of-production depreciation schedule. Begin by filling out the schedule through 2019, and then complete the schedule by entering the amounts through 2022. (Enter depreciation per unit to the nearest cent.) Units-of-Production Depreciation Schedule Depreciation Number of Yearly Rate per Unit Units Expense Accumulated Date Cost Depreciation Book Value January 3, 2018 December 31, 2018 December 31, 2019
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