Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

What is spend analysis? Why is it necessary'?

Answered: 1 week ago

Question

Will formal performance reviews become obsolete? Why or why not?

Answered: 1 week ago