Homework SourseM97 Calculating PartialYear Depreciation LO 93 Calculate the
M9-7 Calculating Partial-Year Depreciation [LO 9-3] Calculate the amount of depreciation to report during the year ended December 31 for equipment that was purchased at a cost of $39,000 on October 1. The equipment has an estimated residual value of $3,000 and an estimated useful life of five years or 20,000 hours. Assume the equipment was used for 1,000 hours from October 1 to December 31 and the company uses (a) straight-line, (b) double-declining-balance, or (c) units-of-production depreciation. Do not round intermediate calculations.) Depreciation (a) Straight-Line (b)Double-Declining-Balance (c) Units-of-Production
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Solution
Please raise separate question for Q2
| WN for A: | WN on Left Side: | ||||||
| Machine Cost | 39000 | A | Straight Line | 1800 | (7200*3/12) | ||
| Less: Salvage | 3000 | B | Double Declining Method | 3900 | (15600*3/12) | ||
| Deprciable cost | 36000 | C | Units of Production | 1800 | (1.8*1000) | ||
| Useful Life | 5 | ||||||
| Deprciable PA | 7,200 | ||||||
| WN for B: | |||||||
| Useful Life | 5 | ||||||
| Rate | 1/Life | ||||||
| Rate | 20.00% | ||||||
| Double Rate | 40.00% | ||||||
| For a Year Dep | 15,600 | (39000*40%) | |||||
| WN for C: | |||||||
| Machine Cost | 39000 | ||||||
| Less: Salvage | 3000 | ||||||
| Deprciable cost | 36000 | ||||||
| Expected Hours | 20000 | ||||||
| Depreciation PH | 1.80 | ||||||
