Pedro Company has $26,500 of machinery being depreciated over 5 years. The estimated residual value is $6,300.
Question:
Pedro Company has $26,500 of machinery being depreciated over 5 years. The estimated residual value is $6,300. After taking 2 years of depreciation, Pedro realizes the equipment is clearly going to last another 4 years and the estimated residual value remains unchanged.
Required 1: What depreciation expense will Pedro record in year 2 when using the straight-line method? $
Required 2: What depreciation expense will Pedro record in year 3 when using the straight-line method? $
Required 3: What depreciation expense will Pedro record in year 2 when using the declining balance method? $
Required 4: What depreciation expense will Pedro record in year 3 when using the declining balance method? $
Required 5: What depreciation expense will Pedro record in year 2 when using the double declining balance method? $
Required 6: What depreciation expense will Pedro record in year 3 when using the double declining balance method? $
Intermediate Accounting Volume 1
ISBN: 978-1119496496
12th Canadian edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy