Using the sum-of-the-years-digits method

Assignment Help Financial Accounting

Reference no: EM13777937

1) Deluxe Ezra Company purchases equipment on January 1, Year 1, at a cost of $1,050,560. The asset is expected to have a service life of 12 years and a salvage value of $89,600.

a) Compute the amount of depreciation for Years 1 through 3 using the straight-line depreciation method. (Round answer to 0 decimal places, e.g. $45,892.)

b) Compute the amount of depreciation for each of Years 1 through 3 using the sum-of-the-years'-digits method. (Round answers to 0 decimal places, e.g. $45,892.)

c) Compute the amount of depreciation for each of Years 1 through 3 using the double-declining-balance method. (Round depreciation rate to 2 decimal places, e.g. 15.84%. Round answers to 0 decimal places, e.g. 45,892.)

Reference no: EM13777937

Questions Cloud

Difference between data and information : Diversification is a means to reduce risk. What are two funds that will provide the investor good diversification at a low cost

Leadership situation and analysis of the factors : Description of the leadership situation and analysis of the factors that influenced the leaders decisions and actions. Discussion on why these factors emerged.

The statistical package for the social sciences : Research Microsoft Excel, the statistical package for the social sciences (SPSS), and the legal and ethical aspects of surveys and data collection. Post a new topic to the Discussion Board that contains your answers to the questions outlined in the a..

What was the income from operations : If the contribution margin ratio for France company is 45%, sales were $425,000 and fixed costs were $100,00, what was the income from operations?

Using the sum-of-the-years-digits method : Deluxe Ezra Company purchases equipment on January 1, Year 1, at a cost of $1,050,560. The asset is expected to have a service life of 12 years and a salvage value of $89,600. Compute the amount of depreciation for Years 1 through 3 using the straigh..

Write about how you handle stress and stressors in your life : Write an essay about how you handle stress and stressors in your life. who or what are the stressors in your life? What are the stressors or the stress triggers? How does stress affect emotionally/physically?

Assignment-expected value and consumer choices : Consumers' choices are prey to subtle discrepancies that arise in cognitive accounting. Learning how and when you are prey to these discrepancies is an important step in improving your decision making.

What patterns might influence the direction of your research : What patterns might influence the direction of your research? What are the possible policy implications of your research? Provide some examples of policies that might result from your research

Periodic method-balance in ledger purchases account : JaCo uses the periodic method. Its begging inventory is $43,000, purchases are $321,000, FOB destination, purchase returns are $ 17,000, and freight is $ 9,000. The balance in JaCo's ledger Purchases account is?

User Account

All Pages