Question 6 (Homework 6)

On January 2, 2016, Alpha Company acquired a new machine by signing a 5 year note for $62,000. The estimated service life is eight years and the total units of output to be 200,000. The estimated residual value is $8,000. Production for the first four years was as follows:

Year	Units
2016	25,000
2017	30,000
2018	35,000
2019	20,000

Using the double declining balance method, how much is: (Enter only whole dollar values.)

1. the 2018 depreciation expense

2. the accumulate depreciation after the fiscal year 2018 adjusting entry

3. the book value of the truck after the fiscal year 2018 adjusting entry

Question 7

Bravo Company purchased a truck on October 1, 2016. Bravo paid $10,000 for the truck in addition to $500 registration & sales taxes. The truck is expected to have a $2,000 residual value and a 5-year life. Bravo has a December 31 fiscal year end. Using the double-declining balance method, how much is: (Enter only whole dollar values.)

the 2019 depreciation expense

the accumulate depreciation after the fiscal year 2019 adjusting entry

the book value of the truck after the fiscal year 2019 adjusting entry

Question 8

On January 1, 2016, Alpha Company purchased equipment for $16,000 with an estimated 10-year life and no salvage value. It was determined that the straight-line method of depreciation would be used. Alpha has a December 31 fiscal year end. During 2020, Alpha determined that the useful life for this equipment should be only 7 years. Using this information, how much is: (Enter only whole dollar values.)

the 2020 depreciation expense

the accumulate depreciation after the fiscal year 2020 adjusting entry

the book value of the truck after the fiscal year 2020 adjusting entry