Question
Target is a company that manufactures and sells bodyboards. On 1/1/23, the company purchases a piece of manufacturing equipment for $2,200,000 cash. The expected residual
Target is a company that manufactures and sells bodyboards. On 1/1/23, the company purchases a piece of manufacturing equipment for $2,200,000 cash. The expected residual value is $400,000 and the useful life is 4 years.
Let's assume that Target uses the Straight Line method of depreciation.
| 2023 | 2024 | 2025 | 2026 | |
| Depreciation Expense for the year | ||||
| Accumulated Depreciation at year-end | ||||
| Net PP&E on year-end Balance Sheet |
Next assume that Target uses the Double-Declining Balance method of depreciation.
| 2023 | 2024 | 2025 | 2026 | |
| Depreciation Expense for the year | ||||
| Accumulated Depreciation at year-end | ||||
| Net PP&E on year-end Balance Sheet |
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Principles of Financial Accounting chapters 1-17
Authors: John Wild, Ken Shaw, Barbara Chiappetta
23rd edition
1259687740, 1259687747, 978-1259687747
