Question

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.

Answer 1

Instructios are listed below.

Step-by-step 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