【正文】 a certain product or service or otherwise on a passwordprotected website for classroom use. Learning Objective 3 Journalize entries for the disposal of fixed assets. 169。 2022 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use. Revising Depreciation Estimates At the end of 2022, the asset’s book value is $88,000, as shown below. (continued) LO 2 169。 2022 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use. Depreciation for Federal Ine Tax ? For the fiveyearclass assets, depreciation is spread over six years, as shown below. LO 2 169。 2022 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use. ? The doubledecliningbalance method provides a higher depreciation in the first year of the asset’s use, followed by declining depreciation amounts. Thus, it is called an accelerated depreciation method(加速折舊法） . DoubleDecliningBalance Method LO 2 169。 2022 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use. DoubleDecliningBalance Method If the preceding equipment was purchased and placed into service on October 1, depreciation for the year ending December 31 would be $2,400, puted as follows: LO 2 = $9,600 x 3/12 = $2,400 First year partial depreciation 169。 2022 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use. DoubleDecliningBalance Method ? For the first year, the book value of the equipment is its initial cost of $24,000. ? After the first year, the book value (cost minus accumulated depreciation) declines and, thus, the depreciation also declines. LO 2 169。 2022 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use. DoubleDecliningBalance Method ? The doubledecliningbalance method is applied in three steps: ? Step 1. Determine the straightline percentage using the expected useful life. ? Step 2. Determine the doubledeclining balance rate by multiplying the straightline rate from Step 1 by 2. LO 2 (continued) 雙倍余額遞減法 169。 2022 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use. UnitsofProduction Method A depreciable asset costs $24,000. Its estimated residual value is $2,000, and it is expected to have a useful life of 10,000 operating hours. During the year, the asset was operated 2,100 hours. LO 2 169。 2022 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use. StraightLine Method LO 2 If the preceding equipment was purchased and placed into service on October 1, the depreciation for the first year of use would be $1,100, puted as follows: $4,400 x 3/12 = $1,100 169。 2022 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use. StraightLine Method ? The straightline method provides for the same amount of depreciation expense for each year of the asset’s useful life. LO 2 Annual Depreciation Cost – Residual Value Useful Life = 169。 2022 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use. LO 2 Factors in Computing Depreciation ? Three factors determine the depreciation expense for a fixed asset. These three factors are: 1. The asset’s initial cost 原始成本 2. The asset’s expected useful life 使用年限 3. The asset’s estimated residual value 剩余的價值 169。 2022 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use. Depreciation ? Over time, most fixed assets (equipment, buildings, and land improvements) lose their ability to provide services. The periodic recording of the cost of fixed assets as an expense is called depreciation. LO 2 169。 2022 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a passwordprotected website for classroom use. Leasing Fixed As