Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On January 4, 2019, Columbus Company purchased new equipment for $621,000 that had a useful life of four years and a salvage value of $41,000.
On January 4, 2019, Columbus Company purchased new equipment for $621,000 that had a useful life of four years and a salvage value of $41,000. Required: Prepare a schedule showing the annual depreciation and end-of-year accumulated depreciation for the first three years of the assets life under the straight-line method, the sum-of-the-years-digits method, and the double-declining-balance method. Analyze: If the double-declining balance method is used to compute depreciation, what would be the book value of the asset at the end of 2020?
STRAIGHT LINE METHOD | ||||||
Year | Acquisition Cost | Salvage Value | Useful Life | Annual Depreciation | Accumulated Depreciation | |
2019 | years | |||||
2020 | years | |||||
2021 | years |
SUM-OF-THE-YEARS'-DIGITS METHOD | ||||
Year | Fraction | Cost Less Salvage | Annual Depreciation | Accumulated Depreciation |
2019 | ||||
2020 | ||||
2021 |
DOUBLE DECLINING BALANCE METHOD | ||||
Year | Beginning Book Value | Rate | Annual Depreciation | Accumulated Depreciation |
2019 | ||||
2020 | ||||
2021 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started