Part D. Rancho Cucamonga, Inc. purchased equipment on January 1, 2012. The equipment cost $110. Rancho estimated the equipment would last ten years and would have a $10 residual (scrap) value at the end of the tenth year.

Required:

1. Compute annual depreciation expense if Rancho depreciated the equipment on a straight-line basis.

2. Under straight-line depreciation, report the equipment on the December 31, 2013

(the end of the second year) balance sheet.

Equipment, cost	$
Less: accumulated depreciation	__________
Equipment, net or book value	$

3. Compute the 2012 depreciation expense if Rancho used the double-declining balance method to

depreciate the equipment.

4. Under double-declining depreciation, report the equipment on the December 31, 2012

(the end of the first year) balance sheet.

Equipment, cost	$
Less: accumulated depreciation	__________
Equipment, net or book value	$

Part D. Rancho Cucamonga, Inc. purchased equipment on January 1, 2012. The equipment cost $110. Rancho estimated the equipment would last ten years and would have a $10 residual (scrap) value at the end of the tenth year.

Required:

1. Compute annual depreciation expense if Rancho depreciated the equipment on a straight-line basis.

2. Under straight-line depreciation, report the equipment on the December 31, 2013

(the end of the second year) balance sheet.

Equipment, cost	$
Less: accumulated depreciation	__________
Equipment, net or book value	$

3. Compute the 2012 depreciation expense if Rancho used the double-declining balance method to

depreciate the equipment.

4. Under double-declining depreciation, report the equipment on the December 31, 2012

(the end of the first year) balance sheet.

Equipment, cost	$
Less: accumulated depreciation	__________
Equipment, net or book value	$