Question

Marigold Company purchases equipment on January 1, Year 1, at a cost of $576,870. The asset is expected to have a service life of 12 years and a salvage value of $49,200.

Compute the amount of depreciation for Years 1 through 3 using the straight-line depreciation method. (Round answers to 0 decimal places, e.g. 5,125.)

Depreciation for Year 1 $

Depreciation for Year 2 $

Depreciation for Year 3 $ LINK TO TEXT

Compute the amount of depreciation for each of Years 1 through 3 using the sum-of-the-years'-digits method.

Depreciation for Year 1 $

Depreciation for Year 2 $

Depreciation for Year 3 $ LINK TO TEXT

Compute the amount of depreciation for each of Years 1 through 3 using the double-declining-balance method. (Round depreciation rate to 2 decimal places, e.g. 15.84%. Round answers to 0 decimal places, e.g. 45,892.)

Depreciation for Year 1 $

Depreciation for Year 2 $

Depreciation for Year 3 $

Answer #1

1) | ||||||

Depreciation expense -Straight line | ||||||

(original cost - salvage value)/useful life | ||||||

(576,870 - 49200)/12 | ||||||

43973 | ||||||

Depreciation for year 1 | 43973 | |||||

Depreciation for year 2 | 43973 | |||||

Depreciation for year 3 | 43973 | |||||

2) | Sum of years digit | |||||

n*(n+1)/2 | ||||||

78 | ||||||

Depreciation for year 1 | 81180 | |||||

Depreciation for year 2 | 74415 | |||||

Depreciation for year 3 | 67650 | |||||

3) | double decling | |||||

rate = 1/12*2 | ||||||

16.67% | ||||||

Depreciation for year 1 | 96145 | |||||

Depreciation for year 2 | 80121 | |||||

Depreciation for year 3 | 66767 | |||||

Waterway Company purchases equipment on January 1, Year 1, at a
cost of $529,970. The asset is expected to have a service life of
12 years and a salvage value of $45,200.
Compute the amount of depreciation for Years 1 through 3 using
the straight-line depreciation method. (Round answers
to 0 decimal places, e.g. 5,125.)
Depreciation for Year 1
$
Depreciation for Year 2
$
Depreciation for Year 3
$
Compute the amount of depreciation for each of Years...

Windsor Company purchases equipment on January 1, Year 1, at a
cost of $516,000. The asset is expected to have a service life of
12 years and a salvage value of $46,440.
Compute the amount of depreciation for each of Years 1 through
3 using the straight-line depreciation method.
(Round answers to 0 decimal places, e.g.
5,125.)
Depreciation for Year 1
$enter a dollar amount rounded to 0 decimal places
Depreciation for Year 2
$enter a dollar amount rounded to...

Marigold Company purchased a new plant asset on April 1, 2020,
at a cost of $723,000. It was estimated to have a service life of
20 years and a salvage value of $59,400. Marigold’ accounting
period is the calendar year.
(a)
Compute the depreciation for this asset for 2020 and 2021 using the
sum-of-the-years'-digits method. (Round answers to 0
decimal places, e.g. 45,892.)
Depreciation for 2020
$enter a dollar amount
Depreciation for 2021

Windsor Company purchased a new plant asset on April 1, 2020, at
a cost of $735,000. It was estimated to have a service life of 20
years and a salvage value of $58,800. Windsor’ accounting period is
the calendar year.
PLEASE SHOW WORK
Compute the depreciation for this asset for 2020 and 2021 using the
sum-of-the-years'-digits method. (Round answers to 0
decimal places, e.g. 45,892.)
Depreciation for 2020
$enter a dollar amount
Depreciation for 2021
$enter a dollar amount
Compute...

Sunland Company purchased a new plant asset on April 1, 2020, at
a cost of $750,000. It was estimated to have a service life of 20
years and a salvage value of $61,200. Sunland’ accounting period is
the calendar year.
Compute the depreciation for this asset for 2020 and 2021 using
the sum-of-the-years'-digits method. (Round answers to
0 decimal places, e.g. 45,892.)
Depreciation for 2020
$enter a dollar amount
Depreciation for 2021
$enter a dollar amount
eTextbook and Media
...

Exercise 11-03
Oriole Company purchased a new plant asset on April 1, 2020, at
a cost of $771,000. It was estimated to have a service life of 20
years and a salvage value of $65,400. Oriole’ accounting period is
the calendar year.
Your answer is incorrect. Try again.
Compute the depreciation for this asset for 2020 and 2021 using the
sum-of-the-years'-digits method. (Round answers to 0
decimal places, e.g. 45,892.)
Depreciation for 2020
$enter a dollar amount
Depreciation for 2021...

On January 1, 2017, Sandhill Company purchased a building and
equipment that have the following useful lives, salvage values, and
costs.
Building, 40-year estimated useful
life, $49,200 salvage value, $828,000 cost
Equipment, 12-year estimated useful
life, $11,200 salvage value, $99,400 cost
The building has been depreciated under the
double-declining-balance method through 2020. In 2021, the company
decided to switch to the straight-line method of depreciation.
Sandhill also decided to change the total useful life of the
equipment to 9 years,...

Exercise 9-20
Blossom Company purchased a new machine on October 1, 2017, at a
cost of $85,000. The company estimated that the machine has a
salvage value of $7,000. The machine is expected to be used for
60,000 working hours during its 8-year life.
Compute depreciation using the following methods in the year
indicated.
Declining-balance using double the straight-line rate for 2017
and 2018. (Round answers to 0 decimal places, e.g. 125)
2017
2018
Depreciation using the Declining-balance method
$enter...

Marigold Furniture Company started construction of a
combination office and warehouse building for its own use at an
estimated cost of $13,000,000 on January 1, 2020. Marigold expected
to complete the building by December 31, 2020. Marigold has the
following debt obligations outstanding during the construction
period.
Construction loan-12% interest, payable semiannually, issued
December 31, 2019
$5,200,000
Short-term loan-10% interest, payable monthly, and principal
payable at maturity on May 30, 2021
3,640,000
Long-term loan-11% interest, payable on January 1 of...

On January 1, 2018, a machine was purchased for $105,000. The
machine has an estimated salvage value of $8,100 and an estimated
useful life of 5 years. The machine can operate for 114,000 hours
before it needs to be replaced. The company closed its books on
December 31 and operates the machine as follows: 2018, 22,800 hrs;
2019, 28,500 hrs; 2020, 17,100 hrs; 2021, 34,200 hrs; and 2022,
11,400 hrs.
Compute the annual depreciation charges over the machine’s life
assuming...

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