On January 2, 2019, the Hanover Company purchased some office equipment for $24,000. The equipment is...

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On January 2, 2019, the Hanover Company purchased some officeequipment for $24,000. The equipment is expected to have a usefullife of five years and a salvage value of $3,000. Prepare aschedule showing the annual depreciation for each of the firstthree years of the asset's life under the straight-line method, thedouble-declining-balance method, and the sum-of-the-years'-digitsmethod

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4.5 Ratings (920 Votes)

	Total Cost		$24,000
	Expected Life (in years)		5
	Salvage Value		$3,000
	Total Depreciation		$21,000

Depreciation Schedule: Straight-Line Method
Year	Rate	Depreciation	Accumulated Depreciation	Book Value
0		$0.00	$0.00	$24,000.00
1	1/5	$4,200	$4,200	$19,800
2	1/5	$4,200	$8,400	$15,600
3	1/5	$4,200	$12,600	$11,400

Double-declining-balance
Year	Rate	Depreciation	Accumulated Depreciation	Book Value
0		$0.00	$0.00	$24,000.00
1	2/5	$9,600	$9,600	$14,400
2	2/5	$5,760	$15,360	$8,640
3	2/5	$3,456	$18,816	$5,184

Sum-of-the-years'-digits
Year	Rate	Depreciation	Accumulated Depreciation	Book Value
0		$0.00	$0.00	$24,000.00
1	1/3	$7,000	$7,000	$17,000
2	4/15	$5,600	$12,600	$11,400
3	1/5	$4,200	$16,800	$7,200

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On January 2, 2019, the Hanover Company purchased some officeequipment for $24,000. The equipment is expected to have a usefullife of five years and a salvage value of $3,000. Prepare aschedule showing the annual depreciation for each of the firstthree years of the asset's life under the straight-line method, thedouble-declining-balance method, and the sum-of-the-years'-digitsmethod

On January 2, 2019, the Hanover Company purchased some office equipment for $24,000. The equipment is...

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