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Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall
Edition 9ISBN: 0073527068Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall
Edition 9ISBN: 0073527068
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Step 1 of 3
Estimated useful life | 4 years |
Cost of machine | $240,000 |
Estimated salvage value | (40,000) |
Amount to be depreciated | $200,000 |
a.
| Net Book Value | Net Book Value | Depreciation | Accumulated |
Year | at Beginning of Year
| at End of Year | Expense
| Depreciation
|
2010 | $240,000 | $196,000
| $44,000 | $ 44,000 |
2011 | 196,000 | 132,000 | 64,000 | 108,000 |
2012 | 132,000 | 76,000
| 56,000 | 164,000 |
2013 | 76,000 | $ 40,000 | 36,000 | 200,000 |
Theunits of production methodis being used. At first glance, no clear pattern can be seen in the amount of depreciation expense recorded each year. However, based on the machine’s productive capacity of 50,000 units and the actual production data provided for 2010-2013, the depreciation expense amounts shown above can be easily verified.
Step 2 of 3
Step 3 of 3
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