Exercise 9-4 Acc400

Assignment from the Readings -9-4
Chapter 9

E9-4 On January 2, 2005, Jansing Corporation acquired a new shape with an estimated useful life of 5 years. The cost of the equipment was $40,000 with a proportion value of $5,000.

a. Prepare a complete depreciation dishearten under the three depreciation methods listed below. Use
a format resembling to the illustrations in Exhibits 94, 95, and 96. In to each one case, assume that a
full year of depreciation was taken in 2005.
1.Straight-line.

Cost Residual Value$40,000 - $5,000
Years of Life5

disparagement $7,000 Annually

dispraise agenda: Straight - Line Method
Year computingDepreciation Expense pile up DepreciationBook Value
$ 40,000
prototypic 35,000 x 1/5 $7,000 $ 7,000 $ 33,000
minute 35,000 x 1/5 $7,000 $ 14,000 $ 26,000
Third 35,000 x 1/5 $7,000 $ 21,000 $ 19,000
stern 35,000 x 1/5 $7,000 $ 28,000 $ 12,000
Fifth 35,000 x 1/5 $7,000 $ 35,000 $ 5,000
Total$35,000


2.200 pct declining-balance.




Depreciation Schedule: 200% Declining-Balance Method
YearComputationDepreciation ExpenseAccumulated DepreciationBook Value
$ 40,000
First $40,000 x 40% $16,000 $ 16,000 $ 24,000
Second $24,000 x 40% $9,600 $ 25,600 $ 14,400
Third $14,400 x 40% $5,760 $ 31,360 $ 8,640
quaternate $8,640 x 40% $3,456 $ 34,816 $ 5,184
Fifth $5,184 - $5,000 $184 $ 35,000 $ 5,000
Total$35,000


3.150 percent declining-balance.
Depreciation Schedule: 150% Declining-Balance Method
YearComputationDepreciation ExpenseAccumulated DepreciationBook Value
$ 40,000
First $40,000 x 30% $12,000 $ 12,000 $ 28,000
Second $28,000 x 30% $8,400 $...If you want to bushel a full essay, order it on our website: Ordercustompaper.com



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