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1.
a. b. c.
Straight- Units of Double-Declining-
Year Line Production Balance
2013
2014
2015
2016
Totals
(Cost – Residual Value) / Years =Yearly Depreciation
Units-of-production method:
(Cost – Residual Value) / Total Hours =Rate
Rate xHours =Yearly Depreciation
2013
2014
2015
2016
Double-declining-balance method:
xRate =Yearly Depreciation
2013
2014
2015
Since depreciation cannot cause book value to fall below residual value:
– =Yearly Depreciation
2016
The method that yields the most depreciation expense in 2013 is the
3.
The method that yields the most total depreciation over the four years is the
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An asterisk (*) will appear to the right of an incorrect entry.
1.
Straight- Units of Double-Declining-
Year Line Production Balance
2013 71,250$ 102,600$ 160,000$
Calculations:
Straight-line method:
(Cost – Residual Value) / Years =Yearly Depreciation
Units-of-production method:
(Cost – Residual Value) / Total Hours =Rate
Double-declining-balance method:
Answers are entered in the cells with gray backgrounds.
Cells with non-gray backgrounds are protected and cannot be edited.