Question

find beginning of period book value for 2022 and the depreciation expense for 2022

for the work you have completed so far. It does not indicate completion. 26 Exercise -3 Migo) uepreciauon metnoas, paruai perioas LLUI4 Return to question The following information applies to the questions displayed below On October 1, 2021, the Allegheny Corporation purchased equipment for $233,000. The estimated service life of the equipment is 10 years and the estimated residual value is $2,000. The equipment is expected to produce 420,000 units during its life. Part 2 of 3 Required: Calculate depreciation for 2021 and 2022 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service. 3.57 points Exercise 11-3 (Algo) Part 2 2. Double-declining balance. Answer is not complete. End of Period Depreciation for the Period Beginning of Period Book Value Depreciation Еxpense Depreciation Rate (%) Fraction of Year Accumulated Book Value Annual Period Depreciation 221,350 11,650 11,650 $ 20%) 3/12 $ 233,000 2021 221,350 11,650 12/12 20% 2022 Next> of 28 27 26 <Prev Mc Graw

Answer 1

Answer -

Step - (1) - Information Given -

On October 1, 2021, the Allegheny Corporation purchased equipment for $233000.

The estimated service life of the equipment is 10 years.

The estimated residual value is $2000.

The equipment is expected to produce 420000 units during its life.

.

Step - (2) - Calculation of depreciation for 2021 and 2022

Straight Line rate = [($233000-$2000)/10] / [$233000-$2000]

= 10%

Double-declining balance Rate = 2 * Straight Line rate

= 2 * 10%

= 20%

.

Depreciation for the Period					End of Period
Annual Period	Beginning of period Book Value	Depreciation Rate (%)	Fraction of year	Depreciation Expense	Accumulated Depreciation	Book Value
2021	$233000	20%	3/12	$11650 [($233000*20%)*3/12]	$11650	$221350 [$233000-$11650]
2022	$221350	20%	12/12	$44270 [$221350*20%]	$55920 [$11650+$44270]	177080 [$233000-$55920]