Question
Wildhorse Company purchased equipment on account on September 3, 2019, at an invoice price of $190,000. On September 4, 2019, it paid $4,700 for delivery
Wildhorse Company purchased equipment on account on September 3, 2019, at an invoice price of $190,000. On September 4, 2019, it paid $4,700 for delivery of the equipment. A one-year, $1,945 insurance policy on the equipment was purchased on September 6, 2019. On September 20, 2019, Wildhorse paid $3,300 for installation and testing of the equipment. The equipment was ready for use on October 1, 2019. Wildhorse estimates that the equipment's useful life will be four years, with a residual value of $11,000. It also estimates that, in terms of activity, the equipment's useful life will be 74,800 units. Wildhorse has a September 30 fiscal year end. Assume that actual usage is as follows: # of Units Year Ended September 30 15,500 2020 23,800 2021 20,100 2022 16.300 2023 Prepare depreciation schedules for the life of the asset under the following depreciation methods: straight-line 1. 2. double diminishing-balance 3. units-of-production (Round depreciable amount per unit to 2 decimal places, e.g. 5.27 and the final answers to O decimal places, e.g. 5,276.) 1. STRAIGHT-LINE DEPRECIATION Year Depreciable Amount Depr. Rate = Depr. Expense Accu Dep 2020 $ % $ $ 2021 % 2022 % 2023 %
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