SouthernSouthern

Fried Chicken bought equipment on

January

22 2016?

for

$ 42,000.

The equipment was expected to remain in service for four years and to perform

9,000

fry jobs. At the end of the? equipment's useful? life,

SouthernSouthern

estimates that its residual value will be

$6,000.

The equipment performed

900

jobs the first?year,

2,700

the second? year,

3,600

the third? year, and

1,800

the fourth year.

Requirements

1.	Prepare a schedule of depreciation? expense, accumulated? depreciation, and book value per year for the equipment under the three depreciation methods. Show your computations. ?Note: Three depreciation schedules must be prepared.
2.	Which method tracks the wear and tear on the equipment most? closely?

Requirement 1. Prepare a schedule of depreciation? expense, accumulated? depreciation, and book value per year for the equipment under the three depreciation methods. Show your computations. ?Note: Three depreciation schedules must be prepared.

Begin by preparing a depreciation schedule using the? straight-line method.

Straight-Line Depreciation Schedule
		Depreciation for the Year
	Asset	Depreciable		Depreciation		Depreciation	Accumulated	Book
Date	Cost	Cost		Rate		Expense	Depreciation	Value
1-2-2016
12-31-2016			/		=
12-31-2017			/		=
12-31-2018			/		=
12-31-2019			/		=

Before completing the? units-of-production depreciation? schedule, calculate the depreciation expense per unit.

(		-		) /		=	Depreciation per unit
(		-		) /		=

Prepare a depreciation schedule using the? units-of-production method.

Units-of-Production Depreciation Schedule
		Depreciation for the Year
	Asset	Depreciation		Number of		Depreciation	Accumulated	Book
Date	Cost	Per Unit		Units		Expense	Depreciation	Value
1-2-2016
12-31-2016			x		=
12-31-2017			x		=
12-31-2018			x		=
12-31-2019			x		=

Prepare a depreciation schedule using the? double-declining-balance (DDB) method. ?(Enter a? "0" for any items with a zero? value.)

Double-Declining-Balance Depreciation Schedule
		Depreciation for the Year
	Asset	Book		DDB		Depreciation	Accumulated	Book
Date	Cost	Value		Rate		Expense	Depreciation	Value
1-2-2016
12-31-2016			x		=
12-31-2017			x		=
12-31-2018					=
12-31-2019					=

Requirement 2. Which method tracks the wear and tear on the equipment most? closely?

The method tracks wear and tear most closely.

Choose from any list or enter any number in the input fields and then continue to the next question.

Answer rating: 100% (QA)

The depreciation expense is the reduction in the value of fixed assets with the passage of time Part ... View the full answer