Let's walk through the completion of this depreciation schedule step by step.
### Understanding the Entries
- Depreciation Expense: The amount by which the asset depreciates each year.
- Accumulated Depreciation: The total depreciation to date.
- Book Value: The value of the asset after accounting for depreciation.
From the problem statement, we see the following results:
1. Depreciation Expense per Year: [tex]$21,375$[/tex]
2. Initial Book Value: [tex]$94,500$[/tex]
3. Total Depreciation over 4 Years: [tex]$85,500
### Year-by-Year Breakdown
Year 1:
- Depreciation Expense: $[/tex]21,375[tex]$
- Accumulated Depreciation: $[/tex]21,375[tex]$
- Book Value: $[/tex]92,625[tex]$ (starts with $[/tex]94,500[tex]$ and subtracts $[/tex]21,375[tex]$)
Year 2:
- Depreciation Expense: $[/tex]21,375[tex]$
- Accumulated Depreciation: $[/tex]21,375 (from Year 1) + [tex]$21,375 (Year 2) = $[/tex]42,750
- Book Value: [tex]$71,250$[/tex] ([tex]$92,625$[/tex] - [tex]$21,375$[/tex])
Year 3:
- Depreciation Expense: [tex]$21,375$[/tex]
- Accumulated Depreciation: [tex]$42,750 (from Year 2) + $[/tex]21,375 (Year 3) = [tex]$64,125
- Book Value: $[/tex]49,875[tex]$ ($[/tex]71,250[tex]$ - $[/tex]21,375[tex]$)
Year 4:
- Depreciation Expense: $[/tex]21,375[tex]$
- Accumulated Depreciation: $[/tex]64,125 (from Year 3) + [tex]$21,375 (Year 4) = $[/tex]85,500
- Book Value: [tex]$28,500$[/tex] ([tex]$49,875$[/tex] - [tex]$21,375$[/tex])
Total:
- Total Depreciation: [tex]$85,500$[/tex]
### Completion of the Table
[tex]\[
\begin{array}{|c|c|c|c|c|c|c|}
\hline \multicolumn{7}{|c|}{\text{ONE STOP COPY}} \\
\hline \multicolumn{7}{|c|}{\text{Depreciation Schedule - Activity-Based}} \\
\hline \multicolumn{7}{|c|}{\text{End of Year Amounts}} \\
\hline \text{Year} & \multicolumn{2}{|c|}{\text{Depreciation Expense}} & \multicolumn{2}{|c|}{\text{Accumulated Depreciation}} & \multicolumn{2}{|c|}{\text{Book Value}} \\
\hline 1 & \$ & 21,375 & \$ & 21,375 & \$ & 92,625 \\
\hline 2 & \$ & 21,375 & \$ & 42,750 & \$ & 71,250 \\
\hline 3 & \$ & 21,375 & \$ & 64,125 & \$ & 49,875 \\
\hline 4 & \$ & 21,375 & \$ & 85,500 & \$ & 28,500 \\
\hline \text{Total} & \$ & 85,500 & & & & \\
\hline
\end{array}
\][/tex]
This table now correctly reflects the depreciation schedule over the four years for the initial asset value of [tex]$94,500 with an annual depreciation expense of $[/tex]21,375.
