Question

You purchased a molding machine at a cost of $88,000. It has an estimated useful life...

You purchased a molding machine at a cost of $88,000. It has an estimated useful life of 12 years with a salvage value of $8,000. What is the 10 year depreciation for this machine computed by the double declining balance method? PLease show formulas used. Will rate. Thanks

a) 6,667
b)

$4,012.
c)

$8,488.
d)

$3018.
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Calculate depreciation :

Depreciation rate = 100/12*2 = 16.67%

Year Depreciation expense Accumlated dep Book value
1 88000*16.67% = 14670 14670 73330
2 73330*16.67% = 12224 26894 61106
3 61106*16.67% = 10186 37080 50920
4 50920*16.67% = 8488 45568 42432
5 42432*16.67% = 7073 52641 35359
6 35359*16.67% = 5894 58535 29465
7 29465*16.67% = 4912 63447 24553
8 24553*16.67% = 4093 67540 20460
9 20460*16.67% = 3411 70951 17049
10 17049*16.67% = 2842 73793 14207

So answer is 2842

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
You purchased a molding machine at a cost of $88,000. It has an estimated useful life...
You purchased a molding machine at a cost of $88,000. It has an estimated useful life of 12 years with a salvage value of $8,000. What is the 10 year depreciation for this machine computed by the double declining balance method? A-$6,667 B-$4,012 C-$8,488 D-$3,411
A surface mount placement machine is being purchased for $1986000; it has an estimated useful life...
A surface mount placement machine is being purchased for $1986000; it has an estimated useful life of 8 years and a salvage value of $90000 at that time. Determine the depreciation allowance for the 5th year and the book value at the end of the 5th year using Double Declining Balance. what is the depreciation rate?  % d5 = $   B5 = $
A company purchased a computer system at a cost of $32,000. The estimated useful life is...
A company purchased a computer system at a cost of $32,000. The estimated useful life is 5 years, and the estimated residual value is $5,000. Assuming the company uses the double-declining-balance method, what is the depreciation expense for the second year?
A surface mount placement machine is being purchased for $1631000; it has an estimated useful life...
A surface mount placement machine is being purchased for $1631000; it has an estimated useful life of 8 years and a salvage value of $63800 at that time. Determine the depreciation allowance for the 5th year and the book value at the end of the 5th year using Declining Balance where the depreciation rate is determined by the salvage value and time in service. what is the depreciation rate?  % d5 = $   B5 = $
A surface mount placement machine is being purchased for $1465000; it has an estimated useful life...
A surface mount placement machine is being purchased for $1465000; it has an estimated useful life of 8 years and a salvage value of $90400 at that time. Determine the depreciation allowance for the 5th year and the book value at the end of the 5th year using Declining Balance where the depreciation rate is determined by the salvage value and time in service. what is the depreciation rate?  % d5 = B5 =
A surface mount placement machine is being purchased for $1576000; it has an estimated useful life...
A surface mount placement machine is being purchased for $1576000; it has an estimated useful life of 8 years and a salvage value of $58900 at that time. Determine the depreciation allowance for the 5th year and the book value at the end of the 5th year using Declining Balance where the depreciation rate is determined by the salvage value and time in service. what is the depreciation rate? % d5 = $ B5 = $
A machine with a 4-year estimated useful life and an estimated 15% salvage value was acquired...
A machine with a 4-year estimated useful life and an estimated 15% salvage value was acquired on January 1, year 1. The increase in accumulated depreciation for year 2 using the double-declining balance method would be Original cost × 85% × 50%. Original cost × 50%. Original cost × 50% × 50%. Original cost × 85% × 50% × 50%.
On July 1, 2020, Flint Company purchased for $3,960,000 snow-making equipment having an estimated useful life...
On July 1, 2020, Flint Company purchased for $3,960,000 snow-making equipment having an estimated useful life of 5 years with an estimated salvage value of $165,000. Depreciation is taken for the portion of the year the asset is used. (a) Complete the form below by determining the depreciation expense and year-end book values for 2020 and 2021 using the 1. sum-of-the-years'-digits method. 2. double-declining balance method.
Case 1. (5 Marks) A Company purchased a machine with a cost of $950,000. The company...
Case 1. A Company purchased a machine with a cost of $950,000. The company estimates the machine will have a useful life of 6 years and $50,000 salvage value. The machine is expected to produce 600,000 units. The machine is estimated produce 150,000 units in year 1. The machine is expected to run for 450,000 hours. The company projects in Year 1 the machine to run for 150,000 hours. Determine the depreciation expense for year 1 for a) b) c)...
A machine that cost $400,000 has an estimated residual value of $40,000 and an estimated useful...
A machine that cost $400,000 has an estimated residual value of $40,000 and an estimated useful life of four years. The company uses double-declining-balance depreciation. Required: 1. Calculate the machine's depreciable cost. 2. Calculate the machine's depreciation expense for each year. 3. Calculate the machine's accumulated depreciation and book value at the end of each year.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT