Lansbury
Company purchases equipment on January 1, Year 1, at a cost of $518,000.
E11-1 (Depreciation Computations—SL, SYD, DDB) Lansbury Company purchases equipment on January 1,
Year 1, at a cost of $518,000. The asset is expected to have a service life of 12
years and a salvage value of $50,000
Instructions
(a) Compute
the amount of depreciation for each Years 1 through 3 using the straight-line depreciation
method.
Straight-line
method depreciation for each of Years 1 through 3 is computed as:
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Cost:
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Salvage value:
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Depreciable value:
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Asset life: (Years)
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Annual straight-line depreciation value:
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(b) Compute
the amount of depreciation for each Years 1 through 3 using the sum-of-years
digits depreciation method.
(c) Compute
the amount of depreciation for each Years 1 through 3 using the
double-declining balance method. (In performing your calculations, round
constant percentage to the nearest one-hundredth of a point and round answers
to the nearest dollar.)
Note:
Minor differences may occur due to rounding and significant digits.
TUTORIAL
PREVIEW
(a) Compute
the amount of depreciation for each Years 1 through 3 using the straight-line depreciation
method.
Straight-line
method depreciation for each of Years 1 through 3 is computed as:
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Cost:
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$518,000
|
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Salvage value:
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50,000
|
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Depreciable value:
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468,000
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File name: E11-1 Lansbury.xls File type: .doc PRICE: $7
