**On March 31, 2018, Canseco Pipes Fixtures purchased tools for $32,000. Residual worth at the end of an approximated four-year service life is expected to be $8,000. The company expects the machine to run for 20,000 hrs.You are watching: The declining-balance method of depreciation produces a(n)**

**a.** Calculate depreciation expense for 2018 and also 2019 making use of straight line method. **b.** Calculate depreciation cost for 2018 and also 2019 utilizing sum-of-the-yearsâ-digits technique. **c.** Calculate depreciation price for 2018 and also 2019 utilizing double-declining balance technique.

**A.**

Calculate depreciation expense for 2018 and also 2019 utilizing directly line method.

Straight-Line Depreciation | |||||

Choose Numerator: | / | Choose Denominator: | = | Annual Depreciation | |

? | / | ? | = | Annual Depreciation | |

? | / | ? | = | ? | |

Year | Annual Depreciation | x | Fractivity of Year | = | Depreciation Expense |

2018 | x | ? | = | ? | |

2019 | x | ? | = | ? |

**B.** Calculate depreciation price for 2018 and 2019 utilizing sum-of-the-yearsâ-digits technique.

**C.** Calculate depreciation expense for 2018 and 2019 utilizing double-decreasing balance technique.

Depreciation for the Period | End of Period | |||||

Annual Period | Beginning of Period Book Value | Depreciation Rate | Fractivity of Year | Depreciation Expense | Accumulated Depreciation | Publication Value |

2016 | ? | ? | ? | ? | ||

2017 | ? | ? | ? | ? |

Monteâs Coffee Company kind of purchased packaging tools on January5, 2014, for $90,000. The devices was meant to have actually a usefullife of three years, or 20,000 operating hrs, and also a residualvalue of $6,000. The equipment was supplied for 8,900 hours during2014, 7,100 hrs in 2015, and 4,000 hrs in 2016.

Required: | |

1. | Determine the amount ofdepreciation cost for the years finished December 31, 2014, 2015,and 2016 by (a) the straight-line technique, (b) the units-of-outputapproach, and (c) the double-declining-balance strategy. Also determinethe full depreciation cost for the three years by each technique.(Note: For DECLINING BALANCE ONLY, round theanswer for every year to the nearemainder totality dollar.) |

2. | What method yields the highestdepreciation cost for 2014? |

3. | What method yields the mostdepreciation over the three-year life of the equipment? |

X

Depreciation Expense

1. Determine the amount of depreciation expense for the yearsended December 31, 2014, 2015, and also 2016 by (a) the straight-lineapproach, (b) the units-of-output technique, and also (c) thedouble-declining-balance strategy. Also recognize the totaldepreciation expense for the three years by each method.

Score: 0/45

Depreciation Expense |

1 | Year | Straight-Line Method | Units-of-Output Method | Double-Declining-Balance Method |

2 | 2014 | |||

3 | 2015 | |||

4 | 2016 | |||

5 | Total |

Points:

0 / 12

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Asset price minus residual value equates to depreciable expense. Sum theyearly depreciation to recognize complete depreciation.

Annual units-of-manufacturing depreciation allocates the cost ofthe asset equally over the units produced (hours).

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The double-declining price is two times the straight-line price.Publication value is the ascollection price minus accumulated depreciation. In thefirst year, the balance in the collected depreciation account iszero.