Required information Exercise 11-3 (Algo) Depreciation methods partial periods [LO11-2] [The following information applies to the questions displayed below.] On October 1, 2021, the Allegheny Corporation purchased equipment for $148,000. The estimated service life of the equipment is 10 years and the estimated residual value is $5,000. The equipment is expected to produce 260,000 units during its life. Required: Calculate depreciation for 2021 and 2022 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service. Exercise 11-3 (Algo) Part 2 2. Double-declining-balance. Formula Amount for 2021 Amount for 2022 Choose Numerator: Beginning Book Value Answer is not complete. X Double-Declining-Balance Method X Choose Denominator: Double the Straight-line Rate ✔ % % X X X x Fraction of Year Fraction of Year 3/12 12/12 › › Depreciation Expense Depreciation Expense
Required information Exercise 11-3 (Algo) Depreciation methods partial periods [LO11-2] [The following information applies to the questions displayed below.] On October 1, 2021, the Allegheny Corporation purchased equipment for $148,000. The estimated service life of the equipment is 10 years and the estimated residual value is $5,000. The equipment is expected to produce 260,000 units during its life. Required: Calculate depreciation for 2021 and 2022 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service. Exercise 11-3 (Algo) Part 2 2. Double-declining-balance. Formula Amount for 2021 Amount for 2022 Choose Numerator: Beginning Book Value Answer is not complete. X Double-Declining-Balance Method X Choose Denominator: Double the Straight-line Rate ✔ % % X X X x Fraction of Year Fraction of Year 3/12 12/12 › › Depreciation Expense Depreciation Expense
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 2E: Depreciation Methods Sorter Company purchased equipment for 200,000 on January 2, 2019. The...
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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![Required information
Exercise 11-3 (Algo) Depreciation methods partial periods [LO11-2]
[The following information applies to the questions displayed below.]
On October 1, 2021, the Allegheny Corporation purchased equipment for $148,000. The estimated service life of the
equipment is 10 years and the estimated residual value is $5,000. The equipment is expected to produce 260,000 units
during its life.
Required:
Calculate depreciation for 2021 and 2022 using each of the following methods. Partial-year depreciation is calculated
based on the number of months the asset is in service.
Exercise 11-3 (Algo) Part 2
2. Double-declining-balance.
Formula
Amount for
2021
Amount for
2022
Choose Numerator:
Beginning Book Value
Answer is not complete.
Double-Declining-Balance Method
X Choose Denominator:
X Double the Straight-line Rate
%
%
X
X
X
x
Fraction of
Year
Fraction of
Year
3/12
12/12
› ›
Depreciation
Expense
Depreciation
Expense](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe313bcc6-6d96-4bea-a856-5c9788afe468%2F50f96950-07fc-4557-b591-34891ce0e2b3%2F5v8ao_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
Exercise 11-3 (Algo) Depreciation methods partial periods [LO11-2]
[The following information applies to the questions displayed below.]
On October 1, 2021, the Allegheny Corporation purchased equipment for $148,000. The estimated service life of the
equipment is 10 years and the estimated residual value is $5,000. The equipment is expected to produce 260,000 units
during its life.
Required:
Calculate depreciation for 2021 and 2022 using each of the following methods. Partial-year depreciation is calculated
based on the number of months the asset is in service.
Exercise 11-3 (Algo) Part 2
2. Double-declining-balance.
Formula
Amount for
2021
Amount for
2022
Choose Numerator:
Beginning Book Value
Answer is not complete.
Double-Declining-Balance Method
X Choose Denominator:
X Double the Straight-line Rate
%
%
X
X
X
x
Fraction of
Year
Fraction of
Year
3/12
12/12
› ›
Depreciation
Expense
Depreciation
Expense
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