Tails Corporation purchased and installed electronic payment equipment at its drive-in restaurants in San Marcos, TX, at a cost of $37,800. The equipment has an estimated residual value of $3,000. The equipment is expected to process 266,000 payments over its three-year useful life. Per year, expected payment transactions are 63,840, year 1; 146,300, year 2; and 55,860, year 3. Required: Complete a depreciation schedule for each of the alternative methods. (Do not round intermediate calculations.) 1. Straight-line.

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Business

Mario Walker

16 November, 10:05

Tails Corporation purchased and installed electronic payment equipment at its drive-in restaurants in San Marcos, TX, at a cost of $37,800. The equipment has an estimated residual value of $3,000. The equipment is expected to process 266,000 payments over its three-year useful life. Per year, expected payment transactions are 63,840, year 1; 146,300, year 2; and 55,860, year 3. Required: Complete a depreciation schedule for each of the alternative methods. (Do not round intermediate calculations.) 1. Straight-line.

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Kelvin Mosley · Answer 1

Instructios are listed below.

Explanation:

Giving the following information:

Tails Corporation purchased and installed electronic payment equipment at its drive-in restaurants in San Marcos, TX, at a cost of $37,800. The equipment has an estimated residual value of $3,000.

Useful life = 3 years

Staight line = book value/useful life

Year 1 = (37800 - 3000) / 3 = 11,600

Year 2 = 11,600

Year 3 = 11,600