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On January 8. 2014. J.M. Jumper Co. paid $255,000 for a computer system. In addition to the basic purchase price, the company paid a setup
On January 8. 2014. J.M. Jumper Co. paid $255,000 for a computer system. In addition to the basic purchase price, the company paid a setup fee of $1,500. $6,600 sales tax. and $31,900 for a special platform on which to place the computer. J.M. Jumper management estimates that the computer will remain in service for five years and have a residual value of $30,000. The computer will process 55.000 documents the first year, with annual processing decreasing by 2.500 documents during each of the next four years (that is, 52,500 documents in year 2015; 50.000 documents in year 2016: and so on). In trying to decide which depreciation method to use, the company president has requested a depreciation schedule for each of three depreciation methods (straight-line, units-of-production, and double-declining-balance). Complete the Double-Declining-Balance Depreciation Schedule. Begin by filling out the schedule through 2015, and then complete the schedule by entering the amounts through 2018. (Enter the rate to two decimal places. Round all other amounts to the nearest whole dollar.)
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