On March 31, 2018, Canseco Pipes Fixtures purchased tools for $32,000. Residual worth at the end of an approximated four-year service life is expected to be $8,000. The company expects the machine to run for 20,000 hrs.

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a. Calculate depreciation expense for 2018 and also 2019 making use of straight line method. b. Calculate depreciation cost for 2018 and also 2019 utilizing sum-of-the-years’-digits technique. c. Calculate depreciation price for 2018 and also 2019 utilizing double-declining balance technique.


Calculate depreciation expense for 2018 and also 2019 utilizing directly line method.

Straight-Line Depreciation
Choose Numerator: / Choose Denominator: = Annual Depreciation
? / ? = Annual Depreciation
? / ? = ?
Year Annual Depreciation x Fractivity of Year = Depreciation Expense
2018 x ? = ?
2019 x ? = ?

B. Calculate depreciation price for 2018 and 2019 utilizing sum-of-the-years’-digits technique.

C. Calculate depreciation expense for 2018 and 2019 utilizing double-decreasing balance technique.

Depreciation for the Period End of Period
Annual Period Beginning of Period Book Value Depreciation Rate Fractivity of Year Depreciation Expense Accumulated Depreciation Publication Value
2016 ? ? ? ?
2017 ? ? ? ?


Monte’s Coffee Company kind of purchased packaging tools on January5, 2014, for $90,000. The devices was meant to have actually a usefullife of three years, or 20,000 operating hrs, and also a residualvalue of $6,000. The equipment was supplied for 8,900 hours during2014, 7,100 hrs in 2015, and 4,000 hrs in 2016.

1. Determine the amount ofdepreciation cost for the years finished December 31, 2014, 2015,and 2016 by (a) the straight-line technique, (b) the units-of-outputapproach, and (c) the double-declining-balance strategy. Also determinethe full depreciation cost for the three years by each technique.(Note: For DECLINING BALANCE ONLY, round theanswer for every year to the nearemainder totality dollar.)
2. What method yields the highestdepreciation cost for 2014?
3. What method yields the mostdepreciation over the three-year life of the equipment?


Depreciation Expense

1. Determine the amount of depreciation expense for the yearsended December 31, 2014, 2015, and also 2016 by (a) the straight-lineapproach, (b) the units-of-output technique, and also (c) thedouble-declining-balance strategy. Also recognize the totaldepreciation expense for the three years by each method.

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Depreciation Expense



Straight-Line Method

Units-of-Output Method

Double-Declining-Balance Method










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Check My Work

Asset price minus residual value equates to depreciable expense. Sum theyearly depreciation to recognize complete depreciation.

Annual units-of-manufacturing depreciation allocates the cost ofthe asset equally over the units produced (hours).

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The double-declining price is two times the straight-line price.Publication value is the ascollection price minus accumulated depreciation. In thefirst year, the balance in the collected depreciation account iszero.