Question

On January 2, 2016, Alpha Company acquired a new machine by signing a 5-year note for $62,000. The estimated useful life is eight years and the total number of production units is 200,000. Estimated residual value is $8,000. Production for the first four years was as follows:

Year	Units
2016	25,000
2017	30,000
2018	35,000
2019	20,000

Using the double declining balance method, how much is

1. 2018 depreciation expense

2. the accumulated depreciation after the adjustment entry of the fiscal year 2018

3. the book value of the truck after the adjustment entry of the fiscal year 2018

Question

Bravo Company purchased a truck on October 1, 2016. Bravo paid $10,000 for the truck plus $500 of registration and sales tax. The truck is expected to have a salvage value of $2,000 and a useful life of 5 years. Bravo has December 31 as the end of the fiscal year. Using the double-declining balance method, how much is: 

1. 2019 depreciation expense

2. Accumulated depreciation after the 2019 fiscal year adjustment entry

3. the book value of the truck after the 2019 fiscal year adjustment entry

Question 

On January 1, 2016, Alpha Company purchased $16,000 of equipment with an estimated useful life of 10 years and no salvage value. It was determined that the straight-line depreciation method would be used. Alpha has a fiscal year-end of December 31. During 2020, Alpha determined that the useful life of this equipment should be only 7 years. Using this information, how much is: 

1. the accumulated depreciation after the adjustment entry of the fiscal year 2020

2. the book value of the truck after the 2020 fiscal year adjustment entry