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For part Year 4:
Yearly Depreciation x Portion of Year = Depreciation
Units-of-activity method:
(Cost − Residual Value) / Total Hours = Rate
Rate xHours = Yearly Depreciation
Year 1
Year 2
Year 3
Year 4
Double-declining-balance method:
xRate xPortion of Year =
Year 1
Year 2
Year 3
Since depreciation cannot cause book value to fall below residual value:
−=Yearly Depreciation
Year 4
Depreciable
Balance
Yearly
Depreciation
Depreciable
Balance
Residual
Value
An asterisk (*) will appear to the right of an incorrect entry.
a. b. c.
Straight- Units-of- Double-Declining-
Year Line Activity Balance
1 8,400$ 11,340$ 18,000$
2 33,600 35,280 60,000
3 33,600 30,660 20,000
4 25,200 23,520 2,800
Totals 100,800$ 100,800$ 100,800$
Calculations:
108,000$ 7,200$ 3 33,600$
For part Year 1:
Yearly Depreciation x Portion of Year = Depreciation
33,600$ 0.2500 8,400$
For part Year 4:
Year 4 $8.40 2,800 23,520
Double-declining-balance method:
Score:
ON
Problem 9-3B
Name:
Solution
Section:
Instructions
Answers are entered in the cells with gray backgrounds.
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Depreciation Expense
Year 2 90,000 0.666667 1.0000 60,000
Year 3 30,000 0.666667 1.0000 20,000
Since depreciation cannot cause book value to fall below residual value:
−=Yearly Depreciation
Year 4 10,000$ 7,200$ 2,800$
Depreciable
Balance
Residual
Value
An asterisk (*) will appear to the right of an incorrect entry.
1. a.
Accumulated
Depreciation Depreciation, Book Value,
Year Expense End of Year End of Year
Original cost 800,000$
1
2
3
4
5
Calculation:
(Cost
- Residual Value) / Years = Yearly Depreciation
b.
Answers are entered in the cells with gray backgrounds.
Problem 9-4A
Name:
Section:
Score:
0%
Key Code:
[Key code here]
Instructions
Cells with non-gray backgrounds are protected and cannot be edited.
Straight-Line Depreciation Schedule
Double-Declining-Balance Depreciation Schedule
Accumulated
Depreciation Depreciation, Book Value,
Year Expense End of Year End of Year
Original cost 800,000$
1
2
3
4
5
Calculations:
Year xRate = Yearly Depreciation
1
2
3
4
Since depreciation cannot cause book value to fall below residual value:
Year
-= Yearly Depreciation
5
2.
Depreciable
Balance
Depreciable
Balance
Residual
Value
3.
An asterisk (*) will appear to the right of an incorrect entry.
1. a.
Accumulated
Depreciation Depreciation, Book Value,
Year Expense End of Year End of Year
Original cost 800,000$
1142,000$ 142,000$ 658,000
2142,000 284,000 516,000
3142,000 426,000 374,000
4142,000 568,000 232,000
5142,000 710,000 90,000
Calculation:
Depreciation Depreciation, Book Value,
Year Expense End of Year End of Year
Original cost 800,000$
1320,000$ 320,000$ 480,000
2192,000 512,000 288,000
3115,200 627,200 172,800
469,120 696,320 103,680
513,680 710,000 90,000
Calculations:
Straight-Line Depreciation Schedule
Problem 9-4A
Name:
Solution
Section:
Score:
ON
Instructions
Answers are entered in the cells with gray backgrounds.
Cells with non-gray backgrounds are protected and cannot be edited.
Year xRate = Yearly Depreciation
1800,000$ 0.400000 320,000$
2480,000$ 0.400000 192,000$
3288,000$ 0.400000 115,200$
4172,800$ 0.400000 69,120$
Since depreciation cannot cause book value to fall below residual value:
Year −= Yearly Depreciation
5103,680$ 90,000$ 13,680$
2.
696,320
135,000
800,000
31,320
3.
696,320
88,750
14,930
800,000
Equipment
Depreciable
Balance
Depreciable
Balance
Residual
Value
Accumulated Depreciation
Cash
Equipment
Gain on Sale of Equipment
Accumulated Depreciation
Cash
Loss on Sale of Equipment
An asterisk (*) will appear to the right of an incorrect entry.
1. a.
Accumulated
Depreciation Depreciation, Book Value,
Year Expense End of Year End of Year
Original cost 110,000$
1
2
3
4
Calculation:
(Cost - Residual Value) / Years = Yearly Depreciation
b.
Accumulated
Answers are entered in the cells with gray backgrounds.
Problem 9-4B
Name:
Section:
Score:
0%
Key Code:
[Key code here]
Instructions
Cells with non-gray backgrounds are protected and cannot be edited.
Straight-Line Depreciation Schedule
Double-Declining-Balance Depreciation Schedule
Depreciation Depreciation, Book Value,
Year Expense End of Year End of Year
Original cost 110,000$
1
2
3
4
Calculations:
Year xRate = Yearly Depreciation
1
2
3
Since depreciation cannot cause book value to fall below residual value:
Year
-= Yearly Depreciation
4
2.
3.
Depreciable
Balance
Depreciable
Balance
Residual
Value
An asterisk (*) will appear to the right of an incorrect entry.
1. a.
Accumulated
Depreciation Depreciation, Book Value,
Year Expense End of Year End of Year
Original cost 110,000$
125,625$ 25,625$ 84,375
225,625 51,250 58,750
325,625 76,875 33,125
425,625 102,500 7,500
Calculation:
Depreciation Depreciation, Book Value,
Year Expense End of Year End of Year
Original cost 110,000$
155,000$ 55,000$ 55,000
227,500 82,500 27,500
313,750 96,250 13,750
46,250 102,500 7,500
Calculations:
Straight-Line Depreciation Schedule
Problem 9-4B
Name:
Solution
Section:
Score:
ON
Instructions
Answers are entered in the cells with gray backgrounds.
Cells with non-gray backgrounds are protected and cannot be edited.
1110,000$ 0.500000 55,000$
255,000$ 0.500000 27,500
327,500$ 0.500000 13,750
Since depreciation cannot cause book value to fall below residual value:
Year − = Yearly Depreciation
413,750$ 7,500$ 6,250$
2.
96,250
18,000
110,000
4,250
3.
96,250
10,500
3,250
110,000
Equipment
Depreciable
Balance
Residual
Value
Accumulated Depreciation
Cash
Equipment
Gain on Sale of Equipment
Accumulated Depreciation
Cash
Loss on Sale of Equipment
