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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. Requirement 1. For each of the generally accepted depreciation methods, prepare a depreciation schedule showing asset cost, depreciation expense, accumulated depreciation, and asset book value. Complete the straight-line depreciation schedule. Begin by filling out the schedule through 2019, and then complete the schedule by entering the amounts through 2022. (Enter the rate to two decimal places.) Straight-Line Depreciation Schedule Depreciable Yearly Accumulated Date Rate Cost Expense Depreciation Book Value January 3, 2018 L December 31, 2018 December 31, 2019 Cost
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