Please, I need correct answers and clear explanation. Question 1-Google Chrome ?

Question

Please, I need correct answers and clear explanation.

Question 1-Google Chrome ? Secure l https://edugen.wileyplus.com/edugen/shared/assignmenttest/qprint.uni *Question 1 On January 1, 2016, SugarBear Company acquired squipment costing $151,400, which will be depreciated on the assumption that the equipment ill be useful for five years and have a residual value of $11,000. The estimated output from this equipment is as follows 2016-16,000 units; 2017-20,000 units: 2018-34,000 units: 2019-28,000 units: 2020-19,000 units. The company is now considering possible methods of depreciation for this asset. Calculate what the depreciation expense would be for each year of the assets life, if the company chooses I. The straight-line mathed Straight-line par yaa depreciation il. The units-of-production mathod (Round "per unit answer to 2 docimal places, a.g. 15.25.) 2017 2018 2019 2020 ii, The e method (Round ansivers to the nearest whole dollar, e.g. 5,275) Rate 2016 2017 2019 Question Attempts: 0 of 2 used 641 PM O Type here to search n e 9 ^???4x ENG 2018-03-26

Explanation / Answer

Calculate depreciation expense :

a) Straight line :

Depreciation expense = (151400-11000/5) =28080 per year

b) Unit of production method :

Depreciation per unit = (151400-11000/ 117000) = 1.20 per unit

C) Double decline balance :

Straight line rate = 100/5 = 20%

Double decline rate = 20*2 = 40%

Year Depreciation expenses 2016 19200 2017 24000 2018 40800 2019 33600 2020 22800

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---