On January 1, the Matthews Band pays $67,200 for sound equipment. The band estimates it will...
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On January 1, the Matthews Band pays $67,200 for sound equipment. The band estimates it will use this equipment for four years and perform 200 concerts. It estimates that after four years it can sell the equipment for $1,000. During the first year, the band performs 45 concerts. Compute the first-year depreciation using the straight-line method. Choose Numerator: Straight-Line Depreciation Choose Denominator: Annual Depreciation Expense Depreciation expense On January 1, the Matthews Band pays $67,200 for sound equipment. The band estimates it will use this equipment for four years and perform 200 concerts. It estimates that after four years it can sell the equipment for $1,000. During the first year, the band performs 45 concerts. Compute the first-year depreciation using the units-of-production method. Select formula for the depreciation rate of Units of Production: Calculate the first year depreciation expense: Depreciation per concert Concerts in first year Depreciation in first year On April 1, Cyclone Company purchases a trencher for $308,000. The machine is expected to last five years and have a salvage value of $54,000. Compute depreciation expense at December 31 for both the first year and second year assuming the cpmpany uses the straight-line method. Choose Numerator: Year First year Second year Annual Depreciation x Choose Denominator: Fraction of Year = = = Annual Depreciation Annual depreciation Depreciation Expense On January 1, the Matthews Band pays $67,200 for sound equipment. The band estimates it will use this equipment for four years and perform 200 concerts. It estimates that after four years it can sell the equipment for $1,000. During the first year, the band performs 45 concerts. Compute the first-year depreciation using the straight-line method. Choose Numerator: Straight-Line Depreciation Choose Denominator: Annual Depreciation Expense Depreciation expense On January 1, the Matthews Band pays $67,200 for sound equipment. The band estimates it will use this equipment for four years and perform 200 concerts. It estimates that after four years it can sell the equipment for $1,000. During the first year, the band performs 45 concerts. Compute the first-year depreciation using the units-of-production method. Select formula for the depreciation rate of Units of Production: Calculate the first year depreciation expense: Depreciation per concert Concerts in first year Depreciation in first year On April 1, Cyclone Company purchases a trencher for $308,000. The machine is expected to last five years and have a salvage value of $54,000. Compute depreciation expense at December 31 for both the first year and second year assuming the cpmpany uses the straight-line method. Choose Numerator: Year First year Second year Annual Depreciation x Choose Denominator: Fraction of Year = = = Annual Depreciation Annual depreciation Depreciation Expense
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To calculate the firstyear depreciation using the straightline method we need to determine the annua... View the full answer
Related Book For
Financial and Managerial Accounting
ISBN: 978-1260247855
8th edition
Authors: John J Wild, Ken W. Shaw
Posted Date:
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