Math Problem Solver

purchase price of =(102 *1000). Shipping charges are 6% of the Purchase Price,

installation charges are 4% of the Purchase Price, initial testing charges are 3% of P.P., and 1% of

the Purchase Price is for staff training. These costs were capitalized as part of the equipment's

value since they were necessary to prepare it for its intended use. The company estimates the

following:

.

Useful life: (0.01% of Total Cost) years or (20.83% of Total Cost) bottling cycles

Residual value: (16.67% of Total Cost)

Greenfield Bottling Co. used the equipment for bottling operations as follows:

Year 1: (1.67% of Total Cost) cycles

Year 2: (4.58% of Total Cost) cycles

.

Year 3: (5.83% of Total Cost) cycles

Year 4: (4.17% of Total Cost) cycles

.

Year 5: (2.5% of Total Cost) cycles

Year 6: (2.08% of Total Cost) cycles

Required:

Prepare a schedule of depreciation expense, accumulated depreciation, and book value at the

end of each year using the following methods:

1. Straight-Line Depreciation

2. Units of Production Depreciation

3. Double-Declining Balance Depreciation

4. MACRS using 5-year property class