Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello

تمرين 10

Depreciation Methods
On January 2, 2015, Jatson Corporation acquired a new machine with an estimated u seful life of five years. The cost of the equipment was $40,000 with an estimated residual value of $5,000.
a. Prepare a complete depreciation table under the three depreciation methods listed below. Use a format similar to the illustrations in Exhibits 9-4 , 9-5 , and 9-6. In each case, assume that a full year of depreciation was taken in 2015.
1. Straight-line.
2. 200 percent declining-balance.
3. 150 percent declining-balance with a switch to straight-line when it will maximize depreciation expense.
b. Comment on significant differences or similarities that you observe among the patterns of depreciation expense recognized under each of these methods.