Question

3 Existential Products started business in July 1, 2012 with the following purchases: Residual value Depr. Method 6 Land 7 Building 8 Parking Lot, Lighting & Fencing 9 Processing Equipment 10 Office Equipment Useful life $225,000 Indefinite $1,155,000 40 years $56,800 15 years $198,000 10 years $56,000 5 years $175,000 Straight Line $6,580 Double Declining Balance $19,800 Units of Production $8.500 Double Declining Balance 12 At the end of 2018, the company has come to the conclusion that the building will not last 40 years. 13 The estimated useful life should have been 31.5 years with a salvage value of $125,000 15 What is the annual depreciation for the building for 2019? 24,500 17 Original depreciation per year 18 Book value 12-31-18 19 Depreciation for 2019 20 21 The Processing Equipment is rated to run for a total of 60,000 hours based on three shifts in ten years. 22 Prepare a depreciation schedule for land improvements, processing equipment and office equipment 23 Beg BV Depr Accum Depr 12.250 12.250 24 Land Improvements 25 2010 26 2011 27 2012 28 2013 29 2014 30 2015 31 2016 32 2017 33 2018 34 2019 35 2020 36 2021 37 2022 38 2023 39 2024 40 2025 Depr Accum Depr 43 Per hour depreciation 44 Machinery 45 2010 46 2011 47 2012 48 2013 Asset Allocation Hours used Beg BV 2,200 5.900 6,200 5 BOO Asset Impairment Depreciation +
This is all of the information I have for this problem. The Depr, and Acc Depr are a guess for the first one

Answer 1

Office equipment 2010 2011 2012 2013 2014 Beg.By 56,000 33,600 20,160 12,096 9,677 Depreciation 22,400 13,440 8,064 2,419 1,177 Acc.Depre. Closing BV Rate used 22,400 33,600 35,840 20,160 43,904 12,096 40% 46,323 9,677 47,500 8,500 Machinery Hours used 2010 2,200 2011 5,900 2012 6,200 2013 5,800 2014 6,100 2015 6,000 2016 5,750 2017 5,900 2018 5,800 2019 6,100 2020 4,250 Beg.BV Depreciation Acc.Depre. 1,98,000 6,534 6534 1,91,466 17,523 24,057 1,73,943 18,414 42,471 1,55,529 17,226 59,697 1,38,303 18,117 77,814 1,20,186 17,820 95,634 1,02,366 17,078 1,12,712 85,289 17,523 1,30,235 67,766 17,226 1,47,461 50,540 18,117 1,65,578 32,423 12,623 1,78,200 24,500 Building Original depreciation per year Book value on 31/12/2018 Depreciation for 2019 (995750-125000)/25 9,95,750 34,830 60,000

Land improvements 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Beg.BV Depreciation Acc.Depre. Closing BV Rate used 56,800 7,571 7,571 49,229 49,229 6,562 14,134 42,666 42,666 5,687 19,821 36,979 36,979 4,929 24,750 32,050 32,050 4,272 29,023 27,777 27,777 3,703 32,725 24,075 24,075 3,209 35,934 20,866 20,866 2,781 38,716 18,084 13.33% 18,084 2,411 41,126 15,674 15,674 2,089 4 ton 43,216 13,584 13,584 13,584 1,811 45,027 11,7732 11,773 1,569 596 10,204 10,204 1,360 47,956 8,844 1,179 49,135 7,665 7,665 1,022 50,157 6,643 6,643 50,220 6,580 8,844 2025 63