Required information (The following information applies to the questions displayed below) On January 1, 2021, the Allegheny Corporation purchased equipment for $128,000. The estimated service life of the equipment is 10 years and the estimated residual value is $7,000. The equipment is expected to produce 200,000 units during its life. Required: Calculate depreciation for 2021 and 2022 using each of the following methods. . Straight-line. Straight-Line Depreciation Annual Depreciation Expense Depreciation Expense Choose Numerator: Choose Denominator Formula Amounts Depreciation Expense 2021 2022 Double declining-balance. Deuble-Declining-Balance Method Formula Depreciation Expense Amount for 2021 Amount for 2022 Units of production (units produced in 2021, 31,000; units produced in 2022, 26,000), (Round "Depreciation per unit ra nswers to 2 decimal places.) Select formula for Units of Production Depreciation: Calculate 2021 depreciation expense Depreciation per unit rate Units produced in 2021 Depreciation in 2021 Calculate 2022 depreciation expense: Depreciation per unit rate Units produced in 2022 Depreciation in 2022
Required information (The following information applies to the questions displayed below) On January 1, 2021, the Allegheny Corporation purchased equipment for $128,000. The estimated service life of the equipment is 10 years and the estimated residual value is $7,000. The equipment is expected to produce 200,000 units during its life. Required: Calculate depreciation for 2021 and 2022 using each of the following methods. . Straight-line. Straight-Line Depreciation Annual Depreciation Expense Depreciation Expense Choose Numerator: Choose Denominator Formula Amounts Depreciation Expense 2021 2022 Double declining-balance. Deuble-Declining-Balance Method Formula Depreciation Expense Amount for 2021 Amount for 2022 Units of production (units produced in 2021, 31,000; units produced in 2022, 26,000), (Round "Depreciation per unit ra nswers to 2 decimal places.) Select formula for Units of Production Depreciation: Calculate 2021 depreciation expense Depreciation per unit rate Units produced in 2021 Depreciation in 2021 Calculate 2022 depreciation expense: Depreciation per unit rate Units produced in 2022 Depreciation in 2022
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 10E: Hathaway Company purchased a copying machine for 8,700 on October 1, 2019. The machines residual...
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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