On January 1, 20X2, The GenKota Winery purchased a new bottling

system. The system has an expected life of 5

years. The system cost $325,000. Shipping, installation, and set up was an

additional $35,000. At the end of the

useful life, Julie Hayes, chief accountant for GenKota, expects to dispose of

the bottling system for $96,000. She

further anticipates total output of 660,000 bottles over the useful life.

(a)

Assuming use of the

straight-line depreciation method, prepare a schedule showing annual

depreciation expense, accumulated depreciation, and related calculations for

each year.

(b)

Assuming use of the

units-of-output depreciation method, prepare a schedule showing annual

depreciation expense, accumulated depreciation, and related calculations for

each year. Actual output, in bottles,

was 100,000 (20X2), 130,000 (20X3), 150,000 (20X4), 160,000 (20X5), and

120,000 (20X6).

(c)

Assuming use of the

double-declining balance depreciation method, prepare a schedule showing

annual depreciation expense, accumulated depreciation, and related

calculations for each year.

(d)

Assuming use of the

straight-line method, prepare revised depreciation calculations if the useful

life estimate was revised at the beginning of 20X4, to anticipate a remaining

useful life of 4 additional years (in other words, a total life of 6 years). The revised useful life was accompanied by

a change in estimated salvage value to $54,400.

On January 1, 20X2, The GenKota Winery purchased a new bottling

system. The system has an expected life of 5

years. The system cost $325,000. Shipping, installation, and set up was an

additional $35,000. At the end of the

useful life, Julie Hayes, chief accountant for GenKota, expects to dispose of

the bottling system for $96,000. She

further anticipates total output of 660,000 bottles over the useful life.

(a)

Assuming use of the

straight-line depreciation method, prepare a schedule showing annual

depreciation expense, accumulated depreciation, and related calculations for

each year.

(b)

Assuming use of the

units-of-output depreciation method, prepare a schedule showing annual

depreciation expense, accumulated depreciation, and related calculations for

each year. Actual output, in bottles,

was 100,000 (20X2), 130,000 (20X3), 150,000 (20X4), 160,000 (20X5), and

120,000 (20X6).

(c)

Assuming use of the

double-declining balance depreciation method, prepare a schedule showing

annual depreciation expense, accumulated depreciation, and related

calculations for each year.

(d)

Assuming use of the

straight-line method, prepare revised depreciation calculations if the useful

life estimate was revised at the beginning of 20X4, to anticipate a remaining

useful life of 4 additional years (in other words, a total life of 6 years). The revised useful life was accompanied by

a change in estimated salvage value to $54,400.

On January 1, 20X2, The GenKota Winery purchased a new bottling

system. The system has an expected life of 5

years. The system cost $325,000. Shipping, installation, and set up was an

additional $35,000. At the end of the

useful life, Julie Hayes, chief accountant for GenKota, expects to dispose of

the bottling system for $96,000. She

further anticipates total output of 660,000 bottles over the useful life.

(a)

Assuming use of the

straight-line depreciation method, prepare a schedule showing annual

depreciation expense, accumulated depreciation, and related calculations for

each year.

(b)

Assuming use of the

units-of-output depreciation method, prepare a schedule showing annual

depreciation expense, accumulated depreciation, and related calculations for

each year. Actual output, in bottles,

was 100,000 (20X2), 130,000 (20X3), 150,000 (20X4), 160,000 (20X5), and

120,000 (20X6).

(c)

Assuming use of the

double-declining balance depreciation method, prepare a schedule showing

annual depreciation expense, accumulated depreciation, and related

calculations for each year.

(d)

Assuming use of the

straight-line method, prepare revised depreciation calculations if the useful

life estimate was revised at the beginning of 20X4, to anticipate a remaining

useful life of 4 additional years (in other words, a total life of 6 years). The revised useful life was accompanied by

a change in estimated salvage value to $54,400.

system. The system has an expected life of 5

years. The system cost $325,000. Shipping, installation, and set up was an

additional $35,000. At the end of the

useful life, Julie Hayes, chief accountant for GenKota, expects to dispose of

the bottling system for $96,000. She

further anticipates total output of 660,000 bottles over the useful life.

Assuming use of the

straight-line depreciation method, prepare a schedule showing annual

depreciation expense, accumulated depreciation, and related calculations for

each year.

Assuming use of the

units-of-output depreciation method, prepare a schedule showing annual

depreciation expense, accumulated depreciation, and related calculations for

each year. Actual output, in bottles,

was 100,000 (20X2), 130,000 (20X3), 150,000 (20X4), 160,000 (20X5), and

120,000 (20X6).

Assuming use of the

double-declining balance depreciation method, prepare a schedule showing

annual depreciation expense, accumulated depreciation, and related

calculations for each year.

Assuming use of the

straight-line method, prepare revised depreciation calculations if the useful

life estimate was revised at the beginning of 20X4, to anticipate a remaining

useful life of 4 additional years (in other words, a total life of 6 years). The revised useful life was accompanied by

a change in estimated salvage value to $54,400.