1 (10 points) Brenan, Inc. purchased equipment at the beginning of 2004 for $2,100,000. Brenan. The...

  

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1 (10 points) Brenan, Inc. purchased equipment at the beginning of 2004 for $2,100,000. Brenan. The equipment has an estimated residual value (salvage value) of $100,000 and an estimated life of 5 years or 100,000 hours of operation. The machinery was operated for 15,000 hours in 2004, 20,000 hours in 2005, 35,000 hours in 2006, 20,000 hours in 2007, and 10,000 hours in 2008. Create a depreciation schedule for cach of the following depreciation methods for the years 2004 to 2008: 1. Straight-line depreciation method 2. Units-of-production method 3. Double-declining-balance depreciation method a. Straight-Line Date Cost Book Value Depreciation Accumulated Book Value (beginning) Expense Depreciation (ending) 2004 2005 2006 2007 2008 b. Units-of-Production Book Value Depreciation Accumulated Book Value (beginning) Date Cost Expense Depreciation (ending) 2004 2005 2006 2007 2008 c. Double-Declining Balance c. Double-Declining Balance Date Book Value Depreciation Accumulated Book Value (ending) Cost (beginning) Еxpense Depreciation 2004 2005 2006 2007 2008 d. Record the depreciation journal entry using the double-declining balance method for 2006. 1 (10 points) Brenan, Inc. purchased equipment at the beginning of 2004 for $2,100,000. Brenan. The equipment has an estimated residual value (salvage value) of $100,000 and an estimated life of 5 years or 100,000 hours of operation. The machinery was operated for 15,000 hours in 2004, 20,000 hours in 2005, 35,000 hours in 2006, 20,000 hours in 2007, and 10,000 hours in 2008. Create a depreciation schedule for cach of the following depreciation methods for the years 2004 to 2008: 1. Straight-line depreciation method 2. Units-of-production method 3. Double-declining-balance depreciation method a. Straight-Line Date Cost Book Value Depreciation Accumulated Book Value (beginning) Expense Depreciation (ending) 2004 2005 2006 2007 2008 b. Units-of-Production Book Value Depreciation Accumulated Book Value (beginning) Date Cost Expense Depreciation (ending) 2004 2005 2006 2007 2008 c. Double-Declining Balance c. Double-Declining Balance Date Book Value Depreciation Accumulated Book Value (ending) Cost (beginning) Еxpense Depreciation 2004 2005 2006 2007 2008 d. Record the depreciation journal entry using the double-declining balance method for 2006.

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Straight Line Method ook Depreciation Accumulated Expenses Book value Date Cost Value Beginning Depr... View the full answer