Scribd Logo
Upload

Welcome to Scribd!

  • (A) Straight-Line: Computation End of Year

    Uploaded by

    Karen Hernandez
    5 views2 pages
    This document provides information to calculate depreciation expense for an asset using different methods. It lists the asset's cost, salvage value, and estimated useful life. It then shows calculations for (A) straight-line depreciation of $16,800 per year, (B) units-of-activity depreciation of $14,280 for 2005 based on hours used, and (C) declining-balance depreciation of $38,400 for 2005 and $34,560 for 2006.

    Original Description:

    Acco112

    Original Title

    Excercise E10-4

    Copyright

    © © All Rights Reserved

    Available Formats

    XLS, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    This document provides information to calculate depreciation expense for an asset using different methods. It lists the asset's cost, salvage value, and estimated useful life. It then shows calculations for (A) straight-line depreciation of $16,800 per year, (B) units-of-activity depreciation of $14,280 for 2005 based on hours used, and (C) declining-balance depreciation of $38,400 for 2005 and $34,560 for 2006.

    Copyright:

    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xls, pdf, or txt
    5 views2 pages

    (A) Straight-Line: Computation End of Year

    Uploaded by

    Karen Hernandez
    This document provides information to calculate depreciation expense for an asset using different methods. It lists the asset's cost, salvage value, and estimated useful life. It then shows calculations for (A) straight-line depreciation of $16,800 per year, (B) units-of-activity depreciation of $14,280 for 2005 based on hours used, and (C) declining-balance depreciation of $38,400 for 2005 and $34,560 for 2006.

    Copyright:

    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xls, pdf, or txt
    of 2

    DATA:

    Cost

    $96,000.00

    Expected
    Salvage Value

    $12,000.00

    Estimated
    useful life in
    years

    Estimated
    useful life in
    Hours

    10,000

    (A) Straight-line
    Cost

    $96,000.00

    Depreciable
    Cost

    $84,000.00

    2005
    Depreciation
    $16,800.00

    Salvage Value
    $12,000.00

    $84,000.00

    Useful Life

    Annual
    Depreciation
    Expense

    5 Years

    Depreciable Cost

    $16,800

    3/12

    $4,200.00

    Computation

    Year

    Depreciable
    Cost

    Depreciation
    Rate

    End of Year

    Annual
    Depreciation
    Expense

    Accumulated
    Depreciation

    Book Value

    2005

    $84,000

    20%

    $16,800.00

    $16,800.00

    $79,200.00

    (B) Units-of-activity
    Depreciable
    Cost
    $84,000.00

    Total Units of
    Activity
    10,000 Hours

    Depreciable
    Cost per Unit
    $8.40

    Units of Activity
    During the Year
    1,700

    Depreciable Cost
    per Unit
    $8.40

    Annual
    Depreciation
    Expense
    $14,280

    Annual
    Depreciation
    Expense

    (C) Declining-balance
    Book Value at
    Beginning of
    Year

    Declining
    Balance Rate

    $96,000.00

    40%

    $38,400.00

    Computation

    Year

    Book Value
    Beginning of
    Year

    2005

    $96,000.00

    40%

    2006

    $86,400.00

    40%

    Depreciation
    Rate

    Time
    3/12

    2005
    Depreciation
    $9,600.00

    $34,560.00

    You might also like