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Looking to expand its operation, Nisha's Canning Co. invested in new testing equipment for its operation on January 3, 2017 , for a total purchase price of $34,400
They expected the equipment would be able to test cans for 5 years, or a total of 6,690 tests. Nisha's Canning Co. estimated the residual value of the equipment to be $6,400
Nisha's Canning Co. used the equipment as follows:
Year 1 470 tests
Year 2 1,980 tests
Year 3 2,220 tests
Year 4 1,140 tests
Year 5 880 tests
Prepare a schedule of depreciation expense, accumulated depreciation, and book value per year for the equipment under the three depreciation methods.
Note: Input rates as the decimal value.
Depreciation for the Year | ||||||
---|---|---|---|---|---|---|
Date | Asset Cost | Depreciable Cost | Depreciation Rate | Depreciation Expense | Accumulated Depreciation | Book Value |
01/03/17 | $34,400 | $34,400 | ||||
12/31/17 | ||||||
12/31/18 | ||||||
12/31/19 | ||||||
12/31/20 | ||||||
12/31/21 |
Depreciation for the Year | ||||||
---|---|---|---|---|---|---|
Date | Asset Cost | Depreciation per Unit | Number of Units | Depreciation Expense | Accumulated Depreciation | Book Value |
01/03/17 | $34,400 | $34,400 | ||||
12/31/17 | ||||||
12/31/18 | ||||||
12/31/19 | ||||||
12/31/20 | ||||||
12/31/21 |
Depreciation for the Year | ||||||
---|---|---|---|---|---|---|
Date | Asset Cost | Book Value | DDB Rate | Depreciation Expense | Accumulated Depreciation | Book Value |
01/03/17 | $34,400 | $34,400 | ||||
12/31/17 | ||||||
12/31/18 | ||||||
12/31/19 | ||||||
12/31/20 | ||||||
12/31/21 |
Depreciation for the Year | ||||||
---|---|---|---|---|---|---|
Date | Asset Cost | Depreciable Cost | Depreciation Rate | Depreciation Expense | Accumulated Depreciation | Book Value |
01/03/17 | $34,400 | $34,400 | ||||
12/31/17 | 28,000.00 | 0.20 | 5,600.00 | 5,600.00 | 28,800.00 | |
12/31/18 | 28,000.00 | 0.20 | 5,600.00 | 11,200.00 | 23,200.00 | |
12/31/19 | 28,000.00 | 0.20 | 5,600.00 | 16,800.00 | 17,600.00 | |
12/31/20 | 28,000.00 | 0.20 | 5,600.00 | 22,400.00 | 12,000.00 | |
12/31/21 | 28,000.00 | 0.20 | 5,600.00 | 28,000.00 | 6,400.00 |
Depreciation for the Year | ||||||
---|---|---|---|---|---|---|
Date | Asset Cost | Depreciation per Unit | Number of Units | Depreciation Expense | Accumulated Depreciation | Book Value |
01/03/17 | $34,400 | $34,400 | ||||
12/31/17 | 4.19 | 470.00 | 1,967.12 | 1,967.12 | 32,432.88 | |
12/31/18 | 4.19 | 1,980.00 | 8,287.00 | 10,254.11 | 24,145.89 | |
12/31/19 | 4.19 | 2,220.00 | 9,291.48 | 19,545.59 | 14,854.41 | |
12/31/20 | 4.19 | 1,140.00 | 4,771.30 | 24,316.89 | 10,083.11 | |
12/31/21 | 4.19 | 880.00 | 3,683.11 | 28,000.00 | 6,400.00 |
Depreciation for the Year | ||||||
---|---|---|---|---|---|---|
Date | Asset Cost | Book Value | DDB Rate | Depreciation Expense | Accumulated Depreciation | Book Value |
01/03/17 | $34,400 | $34,400 | ||||
12/31/17 | 34,400.00 | 0.40 | 13,760.00 | 13,760.00 | 20,640.00 | |
12/31/18 | 20,640.00 | 0.40 | 8,256.00 | 22,016.00 | 12,384.00 | |
12/31/19 | 12,384.00 | 0.40 | 4,953.60 | 26,969.60 | 7,430.40 | |
12/31/20 | 7,430.40 | 1,030.40 | 28,000.00 | 6,400.00 | ||
12/31/21 |