Enable text based alternatives for graph display and drawing entry

Try another version of this question

Question 1

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 $35,800

They expected the equipment would be able to test cans for 5 years, or a total of 6,580 tests. Nisha's Canning Co. estimated the residual value of the equipment to be $6,600

Nisha's Canning Co. used the equipment as follows:

Year 1 440 tests
Year 2 1,970 tests
Year 3 2,220 tests
Year 4 1,160 tests
Year 5 790 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.

Straight-Line Depreciation Schedule
Depreciation for the Year
Date Asset CostDepreciable CostDepreciation RateDepreciation ExpenseAccumulated DepreciationBook Value
01/03/17 $35,800 $35,800
12/31/17 
12/31/18 
12/31/19 
12/31/20 
12/31/21 


Units-of-Production Depreciation Schedule
Depreciation for the Year
Date Asset CostDepreciation per Unit Number of UnitsDepreciation ExpenseAccumulated DepreciationBook Value
01/03/17 $35,800 $35,800
12/31/17 
12/31/18 
12/31/19 
12/31/20 
12/31/21 


Double-Declining Balance Depreciation Schedule
Depreciation for the Year
Date Asset CostBook ValueDDB Rate Depreciation ExpenseAccumulated DepreciationBook Value
01/03/17 $35,800 $35,800
12/31/17 
12/31/18 
12/31/19 
12/31/20 
12/31/21