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dit View History Bookmarks People Window Help Files C., Fina ttps://edugen.wileyplus.c ainfr.uni I Contact Us I Leg Kimmel, Financial Accounting, 8e FINANCIAL ACCOUNTING (201/207/7 ctice Gradebook ORION Downloadable eTextbook ment BACK Problem 9-9A (Part Level Submission) Sheffield Corporation purchased machinery on January 1, 2017, at a cost of $250,000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of $24,000. The company is considering different depreciation methods that could be used for financial reporting purposes Prepare separate depreciation schedules for the machinery using the straight-line method, and the declining-balance method using double the straight-line rate. STRAIGHT-LINE DEPRECIATION Computation End of Year Depreciation Annual Years Depreciable Depreciation Accumulated Depreciation Book Value Cost Rate 2017 250,000 s 56.500 6,500 193,500 2018 2019 2020 250,000 113,000 137,000 2 50,000 169,5000,500 56,500 6,500 226,000 24,000 DOUBLE-DE INING-BALANCE DEPRECIATION Computation End of Year Accumulated Depreciation Book Value Beginning Depreciation A iation Expense -Annual Depreci Book Value of Year Rate olis I All Rights Reserved. A Division of John Wiley&Sons.Ins; Version 4.Explanation / Answer
Answer a
Depreciable
Cost ($)
Depreciation Rate
Annual Depreciation Expense($)
Accumulated Depreciation ($)
Book Value ($)
Answer b
Note :
Book Value Beginning Year ($)
Depreciation Rate
Annual Depreciation Expense ($)
Accumulated Depreciation ($)
Book Value ($)
* Depreciation expense for 2020 under Double - decline - balance is adjusted so that ending book value is equal to salvage value.
Computation End of Year YearDepreciable
Cost ($)
Depreciation Rate
Annual Depreciation Expense($)
Accumulated Depreciation ($)
Book Value ($)
2017 226,000 25 % 56,500 56,500 193,500 2018 226,000 25 % 56,500 113,000 137,000 2019 226,000 25 % 56,500 169,500 80,500 2020 226,000 25 % 56,500 226,000 24,000 Total $226,000Related Questions
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