Prepare a complete depreciation table under the straight-line method. Assume tha
ID: 2370711 • Letter: P
Question
Prepare a complete depreciation table under the straight-line method. Assume that a full year of depreciation was taken in 2011. (Omit the "$" sign in your response.)
Prepare a complete depreciation table under the 200 percent declining-balance method. Assume that a full year of depreciation was taken in 2011. (Omit the "$" sign in your response.)
Prepare a complete depreciation table under the 150 percent declining-balance with a switch to straight-line when it will maximize depreciation expense. Assume that a full year of depreciation was taken in 2011. (Omit the "$" sign in your response.)
On January 2, 2011, Jansing Corporation acquired a new machine with an estimated useful life of five years. The cost of the equipment was $56,000 with a residual value of $4,100.Explanation / Answer
THIS WILL HELP YOU
You have it worked out correctly, you're just having trouble with the terminology.
(a) depreciable cost
This is the total amount the asset will be depreciated over its estimated useful life.
56,000 - 8,000 = 46,000
(b) depreciation rate
This is how much depreciation is charged for each unit of production.
48,000 / 1,000,000 = 0.048
(c) the units-of-production depreciation for the year.
This is how much depreciation is charged for the current year.
0.048 x 240,000 = 11,520