Question: Recording and Preparing Schedule Using Sums - of - the - Years' - Digits Method Depreciation, Partial Year A fixed asset was purchased October 1

Recording and Preparing Schedule Using Sums

-

-

the

-

Years'

-

Digits Method Depreciation, Partial Year

A fixed asset was purchased October

1

of Year

1,

costing $

40, 000,

with a residual value of $

8, 000

and an estimated three

-

year useful life.

Required

.

Prepare a schedule of depreciation that shows annual depreciation expense, and year

-

end accumulated depreciation and

book value, over the useful life of the asset assuming that the company depreciates the asset using sum of

-

the

-

years

-

digits method.

.

Record the entry to recognize depreciation for the year ended December

31

of Year

1 .

.

Record the entry to recognize depreciation for the year ended December

31

of Year

2 .

Recording and Preparing Schedule Using Sums

-

-

the

-

Years'

-

Digits Method Depreciation, Partial Year

A fixed asset was purchased October

1

of Year

1,

costing

\

40, 000,

with a residual value of

\

8, 000

and an estimated three

-

year useful life.

Required

.

Prepare a schedule of depreciation that shows annual depreciation expense, and year

-

end accumulated depreciation and book value, over the useful life of the asset assuming that the company depreciates the asset using sum of

-

the

-

years'

-

digits method.

.

Record the entry to recognize depreciation for the year ended December

31

of Year

1 .

.

Record the entry to recognize depreciation for the year ended December

31

of Year

2 .

Note: Carry all decimals in calculations; round all final answers to the nearest dollar.

.

.

.

Recording and Preparing Schedule Using Sums - of

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