Question

Sandblasting equipment acquired at a cost of $105,000 has an estimated residual value of $6,000 and an estimated useful life of 10 years. It was placed in service on October 1 of the current fiscal year, which ends on December 31, 20Y5.

**a.** Determine the depreciation for 20Y5 and for
20Y6 by the straight-line method. Round your answer to the nearest
cent if rounding is required.

20Y5 Depreciation

20Y6 Depreciation

**b.** Determine the depreciation for 20Y5 and for
20Y6 by the double-declining-balance method. Round your answer to
the nearest cent if rounding is required.

20Y5 Depreciation

20Y6 Depreciation

Answer #1

**(a)Depreciation by
Straight-line method**

Straight-line Depreciation = (Cost of the assets – Salvage Value) / Useful Life

20Y5 Depreciation = [ ($1,05,000 - $6,000) / 10 Years ] x 3/12**
= **$2,475**

20Y6 Depreciation = [ ($2,70,000 - $9,000) / 3 ] =
**$9,900**

**First Year Depreciation for 3 Months Only, Since the Asset was placed in service on October 1, So only 3 Months depreciation expense will be provided

**(b)Depreciation by
Double-declining-balance method**

Double Declining Depreciation = 2 x Straight Line Depreciation Rate x Book Value Beginning

Straight Line Depreciation Rate = 1 / Useful life = 1/10 = 0.10

20Y5 Depreciation = [ $1,05,000 x 2 x 0.10 ] x 3/12 **=
$5,250**

20Y6 Depreciation = [ ($1,05,000 - $5,250) x 2 x 0.10 ] =
**$19,950**

Partial-Year Depreciation
Equipment acquired at a cost of $97,000 has an estimated
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It was placed into service on October 1 of the current fiscal year,
which ends on December 31.
If necessary, round your answers to the nearest cent.
a. Determine the depreciation for the current
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method.
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Year 1
Year 2
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Equipment acquired at a cost of $66,000 has an estimated
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It was placed in service on April 1 of the current fiscal year,
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It was placed into service on April 1 of the current fiscal year,
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If necessary, round your answers to the nearest cent.
a. Determine the depreciation for the current
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Question 1:
Sandblasting equipment acquired at a cost of $99,000 has an
estimated residual value of $6,000 and an estimated useful life of
5 years. It was placed in service on April 1 of the current fiscal
year, which ends on December 31. If necessary, round your answers
to the nearest cent.
a. Determine the depreciation for the current fiscal year and
for the following fiscal year by the straight-line method.
Year 1 = ________
Year 2 = 18,600
Question...

Partial-year depreciation
DATA
Cost
$100,000
Estimated residual value
$6,000
Estimated useful life (in years)
8
Placed into service on
May 1
End on the fiscal year
December 31
Using formulas and cell references, perform the required analysis,
and input your answers into the Amounts column. Transfer the
numeric results for the green entry cells (C13:C16) into the
appropriate fields in CNOWv2 for grading.
Amounts
Formulas
a.
Depreciation (Straight-line method), Year 1
Depreciation (Straight-line method), Year 2
b.
Depreciation (DDB method),...

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Equipment acquired at the beginning of the fiscal year at a cost
of $118,800 has an estimated residual value of $7,000 and an
estimated useful life of 10 years.
a. Determine the amount of annual depreciation
by the straight-line method.
$
b. Determine the amount of depreciation for the
first and second years computed by the double-declining-balance
method.

A storage tank acquired at the beginning of the fiscal
year at a cost of $129,600 has an estimated residual value of
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the double-declining-balance method. Do not round the
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dollar.
Depreciation
Year 1
$
Year 2
$

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Equipment acquired at the beginning of the fiscal year at a cost
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$_____________
b. Determine the amount of depreciation for the
first and second years computed by the double-declining-balance
method.
Depreciation
Year 1
$__________
Year 2
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This information has been collected in the Microsoft Excel
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