3 7 Points Robert Parish Corporation Purchased A New Machine For Its Assembly Process On January 1 2014 The Cost Of 1 (52.84 KiB) Viewed 48 times
3. (7 points) Robert Parish Corporation purchased a new machine for its assembly process on January 1, 2014. The cost of this machine was $412,000. The company estimated that the machine would have a salvage value of $12,000 at the end of its service life. Its life is estimated at 4 years, and its working hours are estimated at 50,000 hours. Year-end is December 31. Instructions Compute the depreciation expense under the following methods and complete the depreciation schedules below. (a) Straight-line depreciation. (b) Activity method, assuming that machine usage was 15,000 hours for 2014; 14.000 hours for 2015; 13,000 hours for 2016 and 8,000 hours for 2017. (C) Sum-of-the-years'-digits. (d) Double-declining-balance. Straight-line Year Book Value, Beginning Cost Depreciation Expense Accumulated Depreciation = depr exp. Book Value, Ending =Cost - A/D 1 N 2 3 4 Units-of-Production (Activity) Year Book Value, Beginning Cost Depreciation Expense Accumulated Depreciation = depr exp. Book Value, Ending =Cost - A/D 1 N 2 3 4
Sum-of-the-Years' Digits Year Book Value, Beginning Accumulated Depreciation Cost Depreciation Expense Book Value, Ending = depr exp. =Cost - A/D 1 2 3 4 Double Declining Balance Year Book Value, Beginning Accumulated Depreciation Cost Depreciation Expense Book Value, Ending = depr exp. =Cost - A/D 1 2 3 4.
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