$1$

Week $5$: Depreciation

Using the information below, determine the depreciation of the machinery using Straight Line Depreciation, Units of Production, and Double Declining Balance. Then complete the journal entry for the $1$st year of use for each method.

Depreciation will be recorded for the year on December $31.$ Use the Excel template provided in Blackboard.

$\backslash$table$[[$Equipment Purchase Price,$$75,000,],[$Useful Life,$5$ years or $95,000$ units,$25,000$ units in Year $1],[$Salvage Value,$$8,500,]]$

Straight Line Depreciation:

$\backslash$table$[[$Cost$-$Salvage Value,Years,Depreciation per Year$],[,,]]$

Units of Production:

$\backslash$table$[[$Cost$-$Salvage Value,Units,Depreciation per Unit$],[$Units in Year $1=,,],[$Depreciation per Year $=,,],[,,],[,,]]$

Double Declining Balance:

Rate of Depreciation $=$

ACCT$205$ Week $5$