Student Name: Enter your name here

5 Digit Identification Number:

Date: 10/25/2022
 Complete the problem below applying what you have learned in chapter 10. Once the correct answer is selected for
turn green.

As a newly hired staff accountant at Enter your name here Company, you have been asked to review the depreciation
A) some of the data are unreadable. The CEO has asked that you help him fill in the unreadable information including the
the depreciation to be recorded in the next year for the assets listed below so that he may gain insight to the compan
schedule on 12/31/X8.

Item Purchase Date Cost Depreciation Method

Truck 1/1/X4 $ - Straight Line

Equipment 1/1/X6 $ 60,000 Double Declining Balance

Building 7/1/X4 $ 800,000 Straight Line (Fractional Period)

On January 1, 20X8, Enter your name here Company purchased robotic equipment to be used in production. The CEO h
first two years of use under the straight-line method, the double-declining balance method, and the units-of-output m
B) years with a cost of $0. The salvage value of the equipment after 5 y

B.1) Straight-line Method

Net Book Value Depreciation

Year Beginning of Accumulated Depreciation
Expense
Year

20X8 $ -

20X9

B.2) Double-declining balance method

Net Book Value

Depreciation
Year Beginning of Accumulated Depreciation
Expense
Year
 20X8 $ -

20X9

Units-of-output method - Assume that a total of 1,800,000 units will be produced over the useful life of the equipmen
B.3)
follows: 20X8, 600,000; 20X9, 300,000 ; 20Y1, 450,000 ; 20Y2, 150,000 ; 20Y3, 300,000.

Net Book Value

Depreciation
Year Beginning of Accumulated Depreciation
Year Expense

20X8 $ -

20X9

C)
The CEO has provided you with the following costs related to another piece of routine equipment and has asked that y
determine which costs should be capitalized and which should be expensed.

Equipment cost

Cost of Installation

Repair of damages incurred during shipping

Calibration of equipment

Shipping - F.O.B. shipping point

Training of staff on use of equipment

Food for employees during setup

D) Two years into the use of XYZ equipment Enter your name here Company determined that the useful life of the
equipment was actually 7 years instead of the original estimate of 5 years. This change should be applied:
orrect answer is selected for each cell from the drop-down menu, the cell will automatically
green.

ed to review the depreciation schedules left by your predecessor for the company's PP&E as
ble information including the service life, the salvage value, the accumulated depreciation or
ay gain insight to the company's PP&E assets. Assume you are being asked to prepare this
on 12/31/X8.

Accumulated Depreciation
Service Life Depreciation Salvage Value Expense for
on 12/31/X8 20X9

0 #DIV/0! #VALUE!

4 $ 52,500 $ 6,000

$ 80,000 $ 28,800

ed in production. The CEO has asked that you prepare a depreciation schedule for the asset's
d, and the units-of-output method. The useful life of the asset has been determined to be 5
ue of the equipment after 5 years will be $0

Net Book Value

End of Year

Net Book Value

End of Year
e useful life of the equipment as
20Y3, 300,000.

Net Book Value

End of Year

uipment and has asked that you

expensed.

that the useful life of the

nge should be applied: