Urgent help on accounting homework please? Hartman Manufacturing acquired a vehi
ID: 2454066 • Letter: U
Question
Urgent help on accounting homework please?
Hartman Manufacturing acquired a vehicle on January 1, 20X2, for $78,000. The machine is estimated to have a 6-year life, with a residual value of $6,000. Hartman Manufacturing is not certain whether to use the straight-line or double-declining-balance method of depreciation.
Prepare the following depreciation schedule:
Straight-Line
Double-Declining-Balance
Date
Depreciation Expense
Book Value
Depreciation Expense
Book Value
01/01/2X02
12/31/2X02
12/31/20X3
12/31/20X4
12/31/20X5
12/31/20X6
12/31/20X7
Straight-Line
Double-Declining-Balance
Date
Depreciation Expense
Book Value
Depreciation Expense
Book Value
01/01/2X02
12/31/2X02
12/31/20X3
12/31/20X4
12/31/20X5
12/31/20X6
12/31/20X7
Explanation / Answer
Straight Line Double Declining Balance Date Depriciation Book Value Depriciation Book Value 01-01-12 0 78000 0 78000 31-12-12 12000 66000 26000 52000 31-12-13 12000 54000 17333 34667 31-12-14 12000 42000 11556 23111 31-12-15 12000 30000 7704 15407 31-12-16 12000 18000 5136 10272 31-12-17 12000 6000 3424 6848 Straight line depriciation rate = 1/6 * 100 = 16.67% Double Declining Balance Method = 2 * SLM rate * Book Value 1st year depriciation = 2* 16.67 * 78000 = 24000 2nd year depriciation = 2* 16.67 * 52000 = 17333 and so on
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