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 On March 31, 2020 Rats be Gone Inc

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 On March 31, 2020 Rats be Gone Inc., purchased equipment for $95,000 that makes rat traps. RbG Inc. also paid $2,300 for freight and $2,700 for installation. The equipment is expected to last 4 years and have a salvage value of $10,000. RbG Inc expects the machine to produce a total of 30,000 rat traps. 1) What is the acquisition cost of the equipment? Asset Cost (acquisition cost) 2) **REQUIRED** Complete the depreciation schedule for RbG Inc. using the Units of Production method to depreciate the equipment. The actual number of units produced is provided by year. estimated cost / unit 3) Complete an exert of the Balance Sheet Presentation on 12/31/22 units cost/ produced unit Year Depr. Exp Accum Depr NBV 2020 6,000 2021 9,000 2022 7,500 2023 5,500 2024 4,000
DOUBLE DECLINING BALANCE On March 31, 2020 Rats be Gone Inc., purchased equipment for $95,000 that makes rat traps. RBG Inc. also paid $2,300 for frieght and $2,700 for installation. The equipment is expected to last 4 years and have a salvage value of $10,000. RbG Inc expects the machine to produce a total of 30,000 rat traps. 1) ** REQUIRED** Using the same facts related to the equipment purchased for RbG Inc to complete the depreciation schedule using Double Declining Balance Method. Show your work: DDB depr. Rate Beg. NBV Depr. Rate Depr. Exp Accum Depr Ending NBV Year 2020 Apr - Dec 2021 2022 2023 2024
2) Complete an exert of the Balance Sheet Presentation on 12/31/22
STRAIGHT LINE DEPRECIATION & MORE On March 31, 2020 Rats be Gone Inc., purchased equipment for $95,000 that makes rat traps. RbG Inc. also paid $2,300 for freight and $2,700 for installation. The equipment is expected to last 4 years and have a salvage value of $10,000. RbG Inc expects the machine to produce a total of 30,000 rat traps. Compute the answers for the dates and information requested below. A depreciation schedule is not required, but may be prepared. Please show your calculations. **hint - read what is being asked for carefully and for what time period a) Depreciation Expense 2020 year 1) b) Depreciation Expense 2021 c) Accumulated Depreciation 12/31/2022 d) Net Book Value 12/31/2023 e) Depreciation Expense 2024
STRAIGHT LINE : GAIN / LOSS ON SALE 2)) Suppose on August 31, 2023 Rats be Gone sold the equipment They have been using the SL method to depreciate the equipment. Prepare the journal entry at the date of the sale if the equipment was sold for al $20,000 cash and b) $30,000 cash. Show your work here: