Thomas Ramsey is the owner of Atlas Magazine. On January 1, Atlas Magazine purchased printing equipment...

  

Transcribed Image Text:

Thomas Ramsey is the owner of Atlas Magazine. On January 1", Atlas Magazine purchased printing equipment for printing $85,000. The equipment is estimated to have a useful life of 4 years and a salvage value of $5,000. Thomas estimates the equipment will produce 400,000 magazines during its useful life. It produces the following units: 125,000 in year 1, 150,000, in year 2, 75,000 in year 3, and 100,000 in year 4. Required: Record your answers below, use the following page to show your work 1. Calculate depreciation expense and the book value at the end of the third year using the straight-line depreciation method. 2. Calculate depreciation expense and the book value at the end of the second year using the double declining balance depreciation method. Thomas Ramsey is the owner of Atlas Magazine. On January 1", Atlas Magazine purchased printing equipment for printing $85,000. The equipment is estimated to have a useful life of 4 years and a salvage value of $5,000. Thomas estimates the equipment will produce 400,000 magazines during its useful life. It produces the following units: 125,000 in year 1, 150,000, in year 2, 75,000 in year 3, and 100,000 in year 4. Required: Record your answers below, use the following page to show your work 1. Calculate depreciation expense and the book value at the end of the third year using the straight-line depreciation method. 2. Calculate depreciation expense and the book value at the end of the second year using the double declining balance depreciation method.

Answer rating: 100% (QA)

1 StraightLine Depreciation Method Depreciation Expense Cost Salvage value Useful life Depreciation ... View the full answer