Answer:
Bricker Enterprises
Depreciation for 2022, using sum-of-the-years' digits would be closest to $29,455.
Explanation:
a) Data and Calculations:
Cost of machine = $200,000
Residual value = $20,000
Depreciable amount = $180,000
In 2021, the depreciation = 10/55 x $180,000 x 3/12 = $8,182
In 2022, the depreciation = 9/55 x $180,000 = $29,455
Bricker Enterprises uses the sum-of-the-years' digits as an accelerated method of depreciating the machine, so that much of the value of its asset is charged against profit in the earlier years when the repair costs are negligible. To implement this method, Bricker will take into consideration, the original cost of the asset, the salvage value, and the useful life of the asset in years to determine the depreciation charge.
