Project: Depreciation

KLM Company purchased a Mixer Machine on January $2,20$x$1,$ for $$14,500.$ The Mixer is expected to have a useful life of five $(5)$ years and a residual value of $$1,000.$ The company engineers estimated that the Mixer would have a useful life of $7,500$ hours. It was used for $1,500$ hours in $20$x$1,2625$ hours in $202,2250$ hours in $20$x$3,750$ hours in $20$x$4,$ and $375$ hours in $205.$

KLM Company's year$-$end is December $31.$

Required:

Compute the depreciation expense and carrying value for $201$ to $205$ using the following methods: $($a$)$ Straight$-$Line, $($b$)$ Units$-$Of$-$Production, $($c$)$ Double$-$Declining$-$Balance.

Prepare the adjusting entry to record the depreciation for $2008$ that you that you calculated in $1($a$),1($b$),$ and $1($c$).($Three separate independent entries.$)$

Show Accumulated Depreciation Account $($in T Account form$)$ using all three $(3)$ methods mentioned in $2$ from $201$ to $205.($Three separate independent accounts.$)$

Show the Balance Sheet presentation for the Mixer Machine after the entries in $2,$ under all three methods, on December $31,20$x$1.($Three separate independent presentations.$)$

Show the Balance Sheet presentation for the Mixer Machine after the entries in $2,$ under all three methods, on December $31,20$x$5.($Three separate independent presentations.$)$

What conclusions can you draw from the patterns of yearly depreciation?

If you like, you can use the following format:

Calculation of Depreciation:

$\backslash$table$[[\backslash$table$[[$Deprc$.],[$Method$]],$Year,Computation,$\backslash$table$[[$Annual$],[$Deprec Exp$]],\backslash$table$[[$End Bal$],[$AccumDeprc$]],\backslash$table$[[$Asset Carry$-],[$ing Value$]]],[$a$-$ St$.-$Line,$201,,,,]]$

Bus$201-$Acctg$001-$ProjectDepreciation$20231001$

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