Question
Stone Lion Corporation purchased equipment on January 1, 2004 with a cost basis of $30,000, estimated residual value of $5,000, and a five-year life. The
Stone Lion Corporation purchased equipment on January 1, 2004 with a cost basis of $30,000, estimated residual value of $5,000, and a five-year life. The equipments total expected output is 10,000 units. Actual production for each year was as follows: 2004: 2,000 units; 2005: 2,800 units; 2006: 1,700 units; 2007: 1,500 units; 2008: 2,000 units
Prepare a schedule showing the depreciation and book value information for each of the following methods listed below:
STRAIGHT-LINE
End of year Calculation Depr. Exp. Accum. Depr. Book Value
2004
2005
2006
2007
2008
Total
UNITS-OF-PRODUCTION
End of year Calculation Depr. Exp. Accum. Depr. Book Value
2004
2005
2006
2007
2008
Total
DOUBLE-DECLINING BALANCE
End of year Calculation Depr. Exp. Accum. Depr. Book Value
2004
2005
2006
2007
2008
Total
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Financial Accounting Theory
Authors: Craig Deegan
3rd Edition
0070277265, 978-0070277267
