Exercise 11-1 Deluxe Ezra Company purchases equipment on January 1, Year 1, at a
ID: 2481816 • Letter: E
Question
Exercise 11-1 Deluxe Ezra Company purchases equipment on January 1, Year 1, at a cost of $741,020. The asset is expected to have a service life of 12 years and a salvage value of $63,200. Compute the amount of depreciation for Years 1 through 3 using the straight-line depreciation method. (Round answer to 0 decimal places, e.g. $45,892.) Straight-line method depreciation $ LINK TO TEXT Compute the amount of depreciation for each of Years 1 through 3 using the sum-of-the-years'-digits method. (Round answers to 0 decimal places, e.g. $45,892.) Depreciation for Year 1 $ Depreciation for Year 2 $ Depreciation for Year 3 $ LINK TO TEXT Compute the amount of depreciation for each of Years 1 through 3 using the double-declining-balance method. (Round depreciation rate to 2 decimal places, e.g. 15.84%. Round answers to 0 decimal places, e.g. 45,892.) Depreciation for Year 1 $ Depreciation for Year 2 $ Depreciation for Year 3 $
Explanation / Answer
Answer to the Question
Working note-1
Working Note 2
Working Note-3
Method Year-1 Year-2 Year-3 SLM (Refer Working Note 1) 56,485 56,485 56,485 sum-of-the-years'-digits method. (refer Wn-2) 104,280 95,590 86,900 Double-declining-balance method( refer WN 3) 112,970 94,142 78,451Related Questions
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