I keep getting this numbers wrong for a-3 . Please Help On January 2, 2018, Jats
ID: 2411257 • Letter: I
Question
I keep getting this numbers wrong for a-3 . Please Help
On January 2, 2018, Jatson Corporation acquired a new machine with an estimated useful life of five years. The cost of the equipment was $90,000 with an estimated residual value of $7,000 a-1. Prepare a complete depreciation table under the straight-line method. Assume that a full year of depreciation was taken in 2018 a-2. Prepare a complete depreciation table under the 200 percent declining-balance method. Assume that a full year of depreciation was taken in 2018 a-3. Prepare a complete depreciation table under the 150 percent declining-balance with a switch to straight-line when it will maximize depreciation expense. Assume that a full year of depreciation was taken in 2018 Answer is complete but not entirely correct Complete this question by entering your answers in the tabs below Req A1 Req A2 Req A3 Prepare a complete depreciation table under the 150 percent declining-balance with a switch to straight-line when it will maximize depreciation expense. Assume that a full year of depreciation was taken in 2018. (Round your final answers to the nearest whole number.) Depreciation Accumulated Depreciation Year Value 27,000 63000 45,900 44,100 59,130 31,733 68,650 19,366 7,000 Expense 2018 2019 2020 2021 2022 27,000$ 18,900 3,230 9,520 5,810 74,460Explanation / Answer
The declining balance rate at 150% of straight line is -
100% / 5 = 20%
20% x 150% = 30%
Depreciation under straightline method = (90000 - 7000)/5 = $16600
* denotes switch to straight line.
Calculation of depreciation from 2021 onwards-
($30870 - $7000)/2 = $11935