Try another version of this question 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 $35,500
Note: Input rates as the decimal value.
They expected the equipment would be able to test cans for 5 years, or a total of 6,560 tests. Nisha's Canning Co. estimated the residual value of the equipment to be $6,300
Nisha's Canning Co. used the equipment as follows:
Year 1 410 tests
Year 2 1,910 tests
Year 3 2,220 tests
Year 4 1,150 tests
Year 5 870 tests
Prepare a schedule of depreciation expense, accumulated depreciation, and book value per year for the equipment under the three depreciation methods. Depreciation for the Year Date Asset Cost Depreciable Cost Depreciation Rate Depreciation Expense Accumulated Depreciation Book Value 01/03/17 $35,500 $35,500 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 $35,500 $35,500 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 $35,500 $35,500 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 $35,500 $35,500 12/31/17 29,200.00 0.20 5,840.00 5,840.00 29,660.00 12/31/18 29,200.00 0.20 5,840.00 11,680.00 23,820.00 12/31/19 29,200.00 0.20 5,840.00 17,520.00 17,980.00 12/31/20 29,200.00 0.20 5,840.00 23,360.00 12,140.00 12/31/21 29,200.00 0.20 5,840.00 29,200.00 6,300.00 Depreciation for the Year Date Asset Cost Depreciation per Unit Number of Units Depreciation Expense Accumulated Depreciation Book Value 01/03/17 $35,500 $35,500 12/31/17 4.45 410.00 1,825.00 1,825.00 33,675.00 12/31/18 4.45 1,910.00 8,501.83 10,326.83 25,173.17 12/31/19 4.45 2,220.00 9,881.71 20,208.54 15,291.46 12/31/20 4.45 1,150.00 5,118.90 25,327.44 10,172.56 12/31/21 4.45 870.00 3,872.56 29,200.00 6,300.00 Depreciation for the Year Date Asset Cost Book Value DDB Rate Depreciation Expense Accumulated Depreciation Book Value 01/03/17 $35,500 $35,500 12/31/17 35,500.00 0.40 14,200.00 14,200.00 21,300.00 12/31/18 21,300.00 0.40 8,520.00 22,720.00 12,780.00 12/31/19 12,780.00 0.40 5,112.00 27,832.00 7,668.00 12/31/20 7,668.00 1,368.00 29,200.00 6,300.00 12/31/21