Tennyson LTP purchased computers on January 1,2011,at a cost of $120,000.The estimated useful life of the computers is 4 years and there is no estimated salvage value.
Required:
1.Complete the depreciation schedule below assuming Tennyson uses the straight-line method.
2.Complete the depreciation schedule below assuming Tenison uses the double-declining balance method.
3.Which method would report the greater net income to the shareholders for 2011?
4.Which method results in the higher amount of total depreciation expense over the four-year life of the asset?

Question

Tennyson LTP purchased computers on January 1,2011,at a cost of $120,000.The estimated useful life of the computers is 4 years and there is no estimated salvage value.
Required:
1.Complete the depreciation schedule below assuming Tennyson uses the straight-line method.
  2.Complete the depreciation schedule below assuming Tenison uses the double-declining balance method.
  3.Which method would report the greater net income to the shareholders for 2011?
4.Which method results in the higher amount of total depreciation expense over the four-year life of the asset?

Quizplus · Accepted Answer

The Answer of Tennyson LTP purchased computers on January 1,2011,at a cost of $120,000.The estimated useful life of the computers is 4 years and there is no estimated salvage value.
Required:
1.Complete the depreciation schedule below assuming Tennyson uses the straight-line method.
  2.Complete the depreciation schedule below assuming Tenison uses the double-declining balance method.
  3.Which method would report the greater net income to the shareholders for 2011?
4.Which method results in the higher amount of total depreciation expense over the four-year life of the asset?

Tennyson LTP Purchased Computers on January 1,2011,at a Cost of $120,000.The