Question: Calculate the missing information for the installment loan that is being paid off early. Number of Payments Payments Made Payments Remaining Sum-of-the- Digits Payments Remaining
| Calculate the missing information for the installment loan that is being paid off early.
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Alexis Industries purchased a drilling rig for $75,900. Delivery costs totaled $2,873.
The useful life is 7 years and the salvage value is $12,910. Prepare a depreciation schedule using the straight-line method.
| End of Year | Annual Depreciation ($) | Accumulated Depreciation ($) | Book Value ($) |
|---|---|---|---|
| $78,773 (new) | |||
| 1 | $ | $ | $ |
| 2 | $ | $ | $ |
| 3 | $ | $ | $ |
| 4 | $ | $ | $ |
| 5 | $ | $ | $ |
| 6 | $ | $ | $ |
| 7 | $ | $ | $ |
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Complete the sum-of-the-years' digits method of depreciation.
| Useful Life (years) | Sum-of-the- Years' | Depreciation Rate Fraction | ||
|---|---|---|---|---|
| Year 1 | Year 3 | Year 5 | ||
| 9 | ________ | _______, | _________, | ___________ |
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| complete using the units-of-production method of depreciation. Round to the nearest tenth of a cent when necessary.
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