1 On 1 May 20X2, Fast Shipping Company (‘FSC’) paid…

  

1 On 1 May 20X2, Fast Shipping Company (‘FSC’) paid… 1  On 1 May 20X2, Fast Shipping Company (‘FSC’) paid $21,208,600 for land and a warehouse built on it. An appraisal indicated that the land’s fair value was $15,149,000 and the warehouse’s fair value was $11,361,750. FSC estimated that the warehouse can be used for 6 years and will have a salvage value of $250,500. In trying to decide which depreciation method to use for the warehouse, FSC’s managementhas requested a depreciation schedule of straight-line and double- declining-balance depreciation methods. The fiscal year-end of FSC is 31 December. Required: 1 .)  Show a depreciation schedule for the warehouse using the straight-line method showing depreciation expense, accumulated depreciation, and asset book value. 2.)  Show a depreciation schedule for the warehouse using the double- declining-balance method showing the calculation of depreciation expense, accumulated depreciation, and asset book value. Round your numbers to the nearest integer. 3.)  Explain why the units-of-production method is not suitable for recording the depreciation of the warehouse.  Business Accounting ACT B210 Share (0)