| Cookie Creations - Part 2 - Case Scenario |
| Instructions: |
| Compute the depreciation expense under the following methods for the year indicated. |
| (a) Straight-line for 2020 (see 10-9) |
| (b) Units-of-activity (see 10-11) for 2020, assuming milage usage estimate is 15,000 miles; 45,000 miles in 2021; 50,000 miles in 2022. |
| (c) Declining-balance (see 10-13) using double the straight-line rate for 2020 and 2021. |
| NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" . |
| (a) | Straight-line method |
| | Cost | $0 |
| | Less: Salvage value | 0 |
| | Depreciable cost | 0 |
| | Useful life (years) | 5 |
| | Annual depreciation | $0 |
| | 2020 Depreciation: |
| | Annual Depreciation | $0 |
| | Months van in use | 3 |
| | 2020 partial year depreciation | $0 |
| (b) | Units-of-activity method |
| | Cost | Value |
| | Less: Salvage value | Value |
| | Depreciable cost | ? |
| | Useful life (miles) | Value |
| | Depreciable cost/mile | ? |
| | 2020 Depreciation: |
| | Depreciable cost/mile | Value |
| | Miles van used | Value |
| | 2020 depreciation expense | ? |
| (c) | Declining-balance method: |
| | Straight-line rate | Value |
| | Double the straight-line rate | Value |
| | 2020 Depreciation: |
| | Cost | Value |
| | Double the straight-line rate | ? |
| | 2020 full year depreciation | Value |
| | Number of months in use | Value |
| | 2020 partial year depreciation | ? |
| | 2021 Depreciation: |
| | Cost | Value |
| | Less: accumulated depreciation, 2020 | Value |
| | Ending book value, 2020 | ? |
| | Beginning book value, 2021 | Value |
| | Double the straight-line rate | Value |
| | 2021 depreciation expense | ? |
Shaun Webbs
UnitII_PartII.xlsx
