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On January 4 , 2 0 2 0 , Plumpton Inc. paid $ 2 4 0 , 0 0 0 for a computer system. In
On January Plumpton Inc. paid $ for a computer system. In addition to the basic purchase price, the company paid a setup fee of $ $ sales tax, and $ for special installation. Managernent estimates that the computer will remain in service for five years and have a residual value of $ The computer will process documents the first year, decreasing annually by during each of the next four years that is documents in documents is and so on In trying to decid which depreciation method to use, the company president has requested a depreciation schedule for each of three depreciation methods straightline, unitsofproduction, and doublediminishingbalance Requirements Requirements Prepare a depreciation schedule for each of the three depreciation methods listed showing asset cost, depreciation expense, accumulated depreciation, and asset carrying amount. Plumpton Inc. reports to shareholders and creditors in the financial statements using the depreciation method that maximizes reported income in the early years of asset use. Consider the first year Plumpton Inc. uses the computer system. Identify the depreciation method that meets the company's objectives. Discuss the advantages of each depreciation method. cost depreciation expense, accumulated depreciation, and asset he labels for the formula and then compute the rate. Round the e the schedule by entering the amounts through Enter the
On January Plumpton Inc. paid $ for a computer system. In addition to the basic purchase price, the company paid a setup fee of $ $ sales tax, and $ for special installation. Managernent estimates that the computer will remain in service for five years and have a residual value of $ The computer will process documents the first year, decreasing annually by during each of the next four years that is documents in documents is and so on In trying to decid which depreciation method to use, the company president has requested a depreciation schedule for each of three depreciation methods straightline, unitsofproduction, and doublediminishingbalance
Requirements
Requirements
Prepare a depreciation schedule for each of the three depreciation methods listed showing asset cost, depreciation expense, accumulated depreciation, and asset carrying amount.
Plumpton Inc. reports to shareholders and creditors in the financial statements using the depreciation method that maximizes reported income in the early years of asset use. Consider the first year Plumpton Inc. uses the computer system. Identify the depreciation method that meets the company's objectives. Discuss the advantages of each depreciation method.
cost depreciation expense, accumulated depreciation, and asset he labels for the formula and then compute the rate. Round the e the schedule by entering the amounts through Enter the
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