Depreciation for Partial Periods
Clifford Delivery Company purchased a new delivery truck for$54,600 on April 1, 2016. The truck is expected to have a servicelife of 10 years or 109,200 miles and a residual value of $4,800.The truck was driven 11,300 miles in 2016 and 12,700 miles in 2017.Clifford computes depreciation to the nearest whole month.
Required:
Compute depreciation expense for 2016 and 2017 using the
For interim computations, carry amounts out to two decimal places.Round your final answers to the nearest dollar.
Straight-line method
2016 $ 2017 $
Sum-of-the-years'-digits method
2016 $ 2017 $
Double-declining-balance method
2016 $ 2017 $
Activity method
2016 $ 2017 $
For each method, what is the book value of the machine at theend of 2016? At the end of 2017?
(Round your answers to the nearest dollar.)
Straight-line method
2016 $ 2017 $
Sum-of-the-years'-digits method
2016 $ 2017 $
Double-declining-balance method
2016 $ 2017 $
Activity method
2016 $ 2017 $
The book value of the asset in the early years of the asset'sservice will be under an accelerated method as compared to thestraight-line method. The method is appropriate when the servicelife of the asset is affected primarily by the amount the asset isused.
Depreciation for Partial Periods
Clifford Delivery Company purchased a new delivery truck for$54,600 on April 1, 2016. The truck is expected to have a servicelife of 10 years or 109,200 miles and a residual value of $4,800.The truck was driven 11,300 miles in 2016 and 12,700 miles in 2017.Clifford computes depreciation to the nearest whole month.
Required:
Compute depreciation expense for 2016 and 2017 using the
For interim computations, carry amounts out to two decimal places.Round your final answers to the nearest dollar.
Straight-line method
| 2016 | $ |
| 2017 | $ |
Sum-of-the-years'-digits method
| 2016 | $ |
| 2017 | $ |
Double-declining-balance method
| 2016 | $ |
| 2017 | $ |
Activity method
| 2016 | $ |
| 2017 | $ |
For each method, what is the book value of the machine at theend of 2016? At the end of 2017?
(Round your answers to the nearest dollar.)
Straight-line method
| 2016 | $ |
| 2017 | $ |
Sum-of-the-years'-digits method
| 2016 | $ |
| 2017 | $ |
Double-declining-balance method
| 2016 | $ |
| 2017 | $ |
Activity method
| 2016 | $ |
| 2017 | $ |
The book value of the asset in the early years of the asset'sservice will be under an accelerated method as compared to thestraight-line method. The method is appropriate when the servicelife of the asset is affected primarily by the amount the asset isused.
Related questions
Depreciation for Partial Periods
Hathaway Company purchased a copying machine for $8,700 onOctober 1, 2016. The machine's residual value was $500 and itsexpected service life was 5 years. Hathaway computes depreciationexpense to the nearest whole month.
Required:
Compute depreciation expense (rounded to the nearest dollar) for2016 and 2017 using the:Straight-line method
| 2016 | $ |
| 2017 | $ |
Sum-of-the-years'-digits method
| 2016 | $ |
| 2017 | $ |
Double-declining balance method
| 2016 | $ |
| 2017 | $ |
Which method produces the highest book value at the end of2017?
Depreciation for Partial Periods
Hathaway Company purchased a copying machine for $8,700 onOctober 1, 2016. The machine's residual value was $500 and itsexpected service life was 5 years. Hathaway computes depreciationexpense to the nearest whole month.
Required:
Compute depreciation expense (rounded to the nearest dollar) for2016 and 2017 using the:Straight-line method
| 2016 | $ |
| 2017 | $ |
Sum-of-the-years'-digits method
| 2016 | $ |
| 2017 | $ |
Double-declining balance method
| 2016 | $ |
| 2017 | $ |
Which method produces the highest book value at the end of2017?
Depreciation for Partial Periods
Lightning Delivery Company purchased a new delivery truck for$45,000 on April 1, 2013. The truck is expected to have a servicelife of 10 years or 120,000 miles and a residual value of $3,000.The truck was driven 10,000 miles in 2013 and 13,000 miles in 2014.Lightning computes depreciation to the nearest whole month.
Required:
Compute depreciation expense for 2013 and 2014 using the
(Round your answers to the nearest dollar.)
| 2013 | $ |
| 2014 | $ |
Straight-line method
| 2013 | $ |
| 2014 | $ |
Sum-of-the-years'-digits method
| 2013 | $ |
| 2014 | $ |
Double-declining-balance method
| 2013 | $ |
| 2014 | $ |
Activity method
For each method, what is the book value of the machine at theend of 2013? At the end of 2014?
(Round your answers to the nearest dollar.)
| 2013 | $ |
| 2014 | $ |
Straight-line method
| 2013 | $ |
| 2014 | $ |
Sum-of-the-years'-digits method
| 2013 | $ |
| 2014 | $ |
Double-declining-balance method
| 2013 | $ |
| 2014 | $ |
Activity method
