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MBA520_ICEPlantAssetDepreciationandDisposal2.docxMBA 520 | Baker
Plant Assets – Depreciation and Disposal
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Year |
Expected Miles Driven |
|
2017 |
20,000 |
|
2018 |
45,000 |
|
2019 |
40,000 |
|
2020 |
15,000 |
|
Total |
120,000 |
Using the straight-line method of depreciation, calculate the following amounts for the car for each of the four years of its expected life:
a. Depreciation expense
b. Accumulated depreciation balance
c. Book value
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Straight-Line Method |
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Year |
Depreciation Expense |
Accumulated Depreciation |
Book Value |
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Start |
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2017 |
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2018 |
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2019 |
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2020 |
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Using the Units-of-Production method of depreciation, calculate the following amounts for the car for each of the four years of its expected life:
a. Depreciation expense
b. Accumulated depreciation balance
c. Book value
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Units-of-Production Method |
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Year |
Depreciation Expense |
Accumulated Depreciation |
Book Value |
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Start |
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2017 |
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2018 |
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2019 |
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2020 |
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Using the Double-Declining-Balance method of depreciation, calculate the following amounts for the car for each of the four years of its expected life:
a. Depreciation expense
b. Accumulated depreciation balance
c. Book value
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Double-Declining-Balance Method |
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Year |
Depreciation Expense |
Accumulated Depreciation |
Book Value |
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Start |
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2017 |
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2018 |
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2019 |
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2020 |
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Using the Double-Declining-Balance method of depreciation, calculate the following and record the appropriate journal entry assuming all events occurred at end of 2018.
a. Assume the car was involved in an accident, damaged beyond repair, and disposed of.
b. Assume the car was involved in an accident and sold for $1,000.
c. Assume the car was limited edition and resold for $24,000.
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Date |
Account |
Debit |
Credit |
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(a) |
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12/31/18 |
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Date |
Account |
Debit |
Credit |
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(b) |
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12/31/18 |
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Date |
Account |
Debit |
Credit |
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(c) |
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12/31/18 |
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