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Use the Dynamic Exhibit to answer the following questions. 1. Fill in depreciation expense in year 3 under each depreciation method when residual value is
Use the Dynamic Exhibit to answer the following questions.
1. Fill in depreciation expense in year 3 under each depreciation method when residual value is $30,000 and useful life is 3 years:
Depreciation method: | |
Straight-line | 135,000 |
Units-of-Output | 94,500 |
Double-declining | 18,237 |
2. Fill in the book value at the end of year 1 under each depreciation method when residual value is $36,000 and useful life is 4 years:
Depreciation method: | |
Straight-line | 335,250 |
Units-of-Output | Cant Figure out |
Double-declining | 217,500 |
question is accurate, I just need know Units of Outputs, that's it .
Equipment acquired at the beginning of the year at a cost of $435,000 has an estimated residual value of $30,000 and an estimated useful life of 3 years. The units of output for 3 years is 2,600 hours, 2,000 hours, d 1,400 hours, respectively. Determine the comparison of depreciable expense using the straight-line method, units-of-output method, and double-declining balance method. $30,000 $36,000 Move the slider to change the values. Residual Value 3 years 4 years Click on to view the information. Useful Life The amount of depreciation expense each year varies with the depreciation method. The straight-line method allocates the same amount of depreciation expense for each year of the asset's useful life. Depreciation expense under the units-of-output method corresponds with the number of units produced. Depreciation expense under the double-declining-balance method depreciates the asset more rapidly than the other methods. That is, the depreciation expense is higher in the Close Comparing Depreciation Methods Depreciation Expense Year Straight-Line Method Units-of-Output Method Double-Declining-Balance Method 1 $135,000 $175,500 ($67.50 x 2,600 hrs.) $290,145 ($435,000 X 66.7%) 2 135,000 135,000 ($67.50 x 2,000 hrs.) 96,618 ($144,855 x 66.7%) 3 135,000 94,500 ($67.50 x 1,400 hrs.) 18,237 ($48,237 - $30,000) Total $405,000 $405,000 $405,000
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