Sushi Corp. purchased and installed electronic payment equipment at its drive-in restaurants in San Marcos, TX, at a cost of $54,000. The equipment has an estimated residual value of $2,700. The equipment is expected to process 271,000 payments over its three-useful Life. Per yea expected payment transactions are 65,040, year 1, 149,050, year 2,56,910, year 3.Required:Complete a depreciation schedule for each of the alternative methods.1. Straight line2. Units-of-production3. Double declining balance

The Completion of a Depreciation Schedule in the books of Sushi Corp. for the three Depreciation Methods are as follows:

Straight-line Method:

Year              Cost        Depreciation       Accumulated    Net Book

                                         Expense          Depreciation      Balance

Year 1        $54,000         $17,100                 $17,100         $36,900

Year 2         54,000           17,100                  34,200            19,800

Year 3         54,000           17,100                  51,300              2,700

Units-of-production method:

Year              Cost        Depreciation       Accumulated    Net Book

                                         Expense          Depreciation      Balance

Year 1        $54,000         $12,312                 $12,312          $41,688

Year 2         54,000          28,215                 40,527             13,473

Year 3         54,000          10,773                  51,300              2,700

Double-declining-balance Method:

Year              Cost        Depreciation       Accumulated    Net Book

                                         Expense          Depreciation      Balance

Year 1        $54,000       $36,000               $36,000          $18,000

Year 2         54,000          12,000                 48,000              6,000

Year 3         54,000           3,300                  51,300               2,700

Data and Calculations:

Cost of equipment = $54,000

Estimated residual value = $2,700

Estimated useful life = 3 years

Depreciable amount = $51,300 ($54,000 - $2,700)

Units-of-production method:

Depreciation rate per transaction = $0.1893 ($51,300/271,000)

Number of payments = 271,000    Depreciation Expense

Year 1 transactions = 65,040      = $12,312 ($0.1893 x 65,040)

Year 2 transactions = 149,050   = $28,215 ($0.1893 x 149,050)

Year 3 transactions = 56,910     = $10,773 ($0.1893 x 56,910)

Straight-line Method:

Annual depreciation expense = $17,100 ($51,300/3)

Double-declining-balance Method:

Depreciation rate = 66.67% (100/3 x 2)

First year depreciation expense = $36,000 ($54,000 x 66.67%)

Second year depreciation expense = $12,000 ($18,000 x 66.67%)

Third year depreciation expense = $3,300 ($6,000 - $2,700)

Learn more: link

Answer and Explanation:

The preparation of Straight line method , Units of production method and Double declining method is shown below:-

1. Straight line method

     Income statement                       Balance Sheet

Year           Depreciation     Cost    Accumulated  Book value

                       expense                     depreciation

At acquisition                                                                 $54,000

1                 $17,100    $54,000       $17,100             $36,900

2                 $17,100    $54,000       $34,200           $19,800

3                 $17,100    $54,000       $51,300            $2,700

Working Note

Depreciation expenses

For 1 Year ($54,000 - $2,700) ÷ 3

= $17,100

For 2 year ($54,000 - $2,700) ÷ 3

= $17,100

For 3 year ($54,000 - $2,700) ÷ 3

= $17,100

2. Units of production method

     Income statement                       Balance Sheet

Year           Depreciation     Cost    Accumulated  Book value

                       expense                     depreciation

At acquisition                                                                 $54,000

1                       $12,312    $54,000     $12,312                $41,688

2                      $28,215   $54,000     $40,527               $13,473

3                      $10,773   $54,000      $51,300               $2,700

Working Note

For 1 year ($54,000 - $2,700) ÷ 271,000 × $65,040 = $12,312

For 2 year ($54,000 - $2,700) ÷ 271,000 × $149,050 = $28,215

For 3 year ($54,000 - $2,700) ÷ 271,000 × $56,910 = $10,773

3. Double declining method

     Income statement                       Balance Sheet

Year           Depreciation     Cost    Accumulated  Book value

                       expense                     depreciation

At acquisition                                                                 $54,000

1                     $36,000     $54,000   $36,000              $18,000

2                    $12,000     $54,000    $48,000              $6,000

3                    $3,300     $54,000     $51,300                $2,700

Working Note

For 1 year = $54,000 ÷ 3 × 2 = $36,000

For 2 year = $18,000 ÷ 3 × 2 = $12,000

For 3 year = 6,000 - 2,700 = $3,300

Therefore the preparation of depreciation schedule for each of the alternative methods is prepared above.

do u ahve any choices

forbearance of student loan payments. under forbearance, your loan payments are postponed (or reduced) but interest continues to accrue during the period of forbearance. if you don't pay the interest during that period, the interest may be “capitalized,” which means it is added to your principal balance.