Question
Swifty Company purchases equipment on January 1, Year 1, at a cost of $486,000. The asset is expected to have a service life of 12
Swifty Company purchases equipment on January 1, Year 1, at a cost of $486,000. The asset is expected to have a service life of 12 years and a salvage value of $43,740.
Compute the amount of depreciation for each of Years 1 through 3 using the straight-line depreciation method. (Round answers to 0 decimal places, e.g. 5,125.)
| Depreciation for Year 1 | $enter a dollar amount rounded to 0 decimal places | |
|---|---|---|
| Depreciation for Year 2 | $enter a dollar amount rounded to 0 decimal places | |
| Depreciation for Year 3 | $enter a dollar amount rounded to 0 decimal places |
Compute the amount of depreciation for each of Years 1 through 3 using the sum-of-the-years'-digits method.
| Depreciation for Year 1 | $enter a dollar amount | |
|---|---|---|
| Depreciation for Year 2 | $enter a dollar amount | |
| Depreciation for Year 3 | $enter a dollar amount |
Compute the amount of depreciation for each of Years 1 through 3 using the double-declining-balance method. (Round depreciation rate to 2 decimal places, e.g. 15.84%. Round answers to 0 decimal places, e.g. 45,892.)
| Depreciation for Year 1 | $enter a dollar amount rounded to 0 decimal places | |
|---|---|---|
| Depreciation for Year 2 | $enter a dollar amount rounded to 0 decimal places | |
| Depreciation for Year 3 | $enter a dollar amount rounded to 0 decimal places |
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Finance For Non-Finance Executives
Authors: Anurag Singal
1st Edition
1952538327, 9781952538322
