E11-14B (Error Analysis and Depreciation, SL and SYD) Suzuki Company shows the following entries in its Equipment account for 2015. All amounts are based on historical cost.

Equipment

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2015 2015

Jan. 1 Balance 212,000 Mar. 15 Cost of equipment sold

Apr. 2 Purchases 81,000 (purchased prior

6 Freight on equipment to 2011) 20,000

purchased 500

10 Installation costs 3,000

Nov. 12 Repairs 1,250

Instructions

(a) Prepare any correcting entries necessary.

(b) Assuming that depreciation is to be charged for a full year on the ending balance in the asset account, compute the proper depreciation charge for 2015 under each of the methods listed below. Assume an estimated life of 10 years, with no salvage value. The machinery included in the January 1, 2015, balance was purchased in 2013.

(1) Straight-line.

(2) Sum-of-the-years’-digits.

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