Question

Double-Declining-Balance Depreciation

A building acquired at the beginning of the year at a cost of $76,400 has an estimated residual value of $3,100 and an estimated useful life of four years. Determine the following.

(a) | The double-declining-balance rate | % | |

(b) | The double-declining-balance depreciation for the first year | $ |

Answer #1

Answer:-a)- The double-declining-balance rate:-50%

b)- The double-declining-balance depreciation for the first year=$38200

Explanation:- Double Declining balance depreciation is calculated using the following formula:

Depreciation = Depreciation Rate * Book Value of Asset |

Depreciation rate is given by the following formula:

Depreciation Rate = Accelerator *Straight Line Rate |

Straight-line Depreciation Rate = 1/4 = 0.25 = 25%

Declining Balance Rate = 2*25% = 50%

Depreciation for first year = ($76400 *50%) = $38200

Depreciation by Two Methods
Equipment acquired at the beginning of the fiscal year at a cost
of $118,800 has an estimated residual value of $7,000 and an
estimated useful life of 10 years.
a. Determine the amount of annual depreciation
by the straight-line method.
$
b. Determine the amount of depreciation for the
first and second years computed by the double-declining-balance
method.

Depreciation by Two Methods
Equipment acquired at the beginning of the fiscal year at a cost
of $360,000 has an estimated residual value of $45,000 and an
estimated useful life of 10 years.
a. Determine the amount of annual depreciation
by the straight-line method.
$_____________
b. Determine the amount of depreciation for the
first and second years computed by the double-declining-balance
method.
Depreciation
Year 1
$__________
Year 2
$__________

A storage tank acquired at the beginning of the fiscal
year at a cost of $129,600 has an estimated residual value of
$11,000 and an estimated useful life of 10 years. Determine the
amount of depreciation for the first and second years computed by
the double-declining-balance method. Do not round the
double-declining balance rate. Round your answers to the nearest
dollar.
Depreciation
Year 1
$
Year 2
$

a
building acquired at the beginning of the year at a cost of 67600
has an estimated residual value of $2600 and an estimated useful
life of ten years. determine the following: a) depreciation cost b)
the straight line rate c) the annual straight line
depreciation

Warren Company plans to depreciate a new building using the
double declining-balance depreciation method. The building cost
$960,000. The estimated residual value of the building is $66,000
and it has an expected useful life of 25 years. Assuming the first
year's depreciation expense was recorded properly, what would be
the amount of depreciation expense for the second year?

A building acquired at the beginning of the year at a cost of
$108,200 has an estimated residual value of $4,200 and an estimated
useful life of 10 years. Determine the following: (a) The
depreciable cost $ (b) The straight-line rate % (c) The annual
straight-line depreciation $

555.)
Mack Company plans to depreciate a new building using the double
declining-balance depreciation method. The building cost is
$800,000. The estimated residual value of the building is $50,000
and it has an expected useful life of 25 years.
What is the building's book value at the end of the first
year?
A.) $686,000
B.) $736,000
C.) $690,000
D.) $768,000

Opine Company uses the double-declining-balance method of
depreciation. It purchases a building with a cost of $560,000, a
salvage value of $32,000 and a useful life of 16 years. What is the
depreciation expense for the second year? A. $61,250 B. $60,000 C.
$57,750 D. $70,000 E. $66,000

Equipment was acquired at the beginning of the year at a cost of
$662,500. The equipment was depreciated using the
double-declining-balance method based on an estimated useful life
of 9 years and an estimated residual value of $48,430.
A.
What was the depreciation for
the first year? Round your intermediate calculations to 4 decimal
places. Round the depreciation for the year to the nearest whole
dollar.
B.
Assuming that the equipment was
sold at the end of the second year...

Equipment was acquired at the beginning of the year at a cost of
$537,500. The equipment was depreciated using the
double-declining-balance method based on an estimated useful life
of 9 years and an estimated residual value of $47,040.
A.
What was the depreciation for the first year? Round your
intermediate calculations to 4 decimal places. Round the
depreciation for the year to the nearest whole dollar.
B.
Assuming that the equipment was sold at the end of the second
year...

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