Question

what is the double declining depreciation schedule for a truck that was purchased fornPhp 2.5Million with...

what is the double declining depreciation schedule for a truck that was purchased fornPhp 2.5Million with a lifetime of 3 years and has a residual value of Php 250,000? Asset cost: Php2500000, Residual cost 250,000, cost residual2,250,000, DDB :66.67%, duration:3 years, Year:1Fraction:66.67% (year 1), Depreciation____, Net Book Value____. Year 2 Fraction:66.67%, Depreciation:_____, Net Book Value____. Year # , Fraction:66.67%, Depreciation:____. Net Book Value250,000.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The double declining depreciation method is also known as 200% declining balance method of depreciation, is a common form of accelerated depreciation. Compared to straight line method of depreciation, in accelerated depreciation the asset will be depreciated faster. Although the depreciation will be faster, the total depreciation over the life of the asset will not be greater than the total depreciaiton using SLM method. This could result in in double declining balance method will result in greater depreciat

Year Applicable rate Starting carrying value Depreciation

Net book value
1 66.67% 2500000 1666750 833250
2 66.67% 833250 555528 277722
3 66.67% 277722 185157 92565

ion expense in each of the early years of an asset's life and smaller depreciation expense in the later years of an asset's life as compared to straight line depreciation.

Based on above

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
"Compute the book value at the end of 4 years using double-declining-balance (DDB) depreciation schedule for...
"Compute the book value at the end of 4 years using double-declining-balance (DDB) depreciation schedule for the following asset: Cost of the asset, I: $300,000. Useful life, N: 8 years. Salvage value, S: $34,000."
"Compute the book value at the end of 5 years using double-declining-balance (DDB) depreciation schedule for...
"Compute the book value at the end of 5 years using double-declining-balance (DDB) depreciation schedule for the following asset: Cost of the asset, I: $298,000. Useful life, N: 7 years. Salvage value, S: $35,000."
Double Declining Balance Method -- Commercial Lawn Mower: Acquired January 1. Purchased for $14,000; salvage value...
Double Declining Balance Method -- Commercial Lawn Mower: Acquired January 1. Purchased for $14,000; salvage value is $2,000. Useful life is 5 years. A. Is the salvage value used to compute book value (circle the answer)? Yes or No B. How is the double declining rate computed? C.Complete the following Double Declining Balance Table: Year Book Value: Start of Year DDB Percent Annual Depreciation Expense Accumulated Depreciation Book Value: End of Year Year 1 Year 2 Year 3 Year 4...
Depreciation Methods ABC Co purchased a truck on January 1, 2015 for $25,000; it cost $2500...
Depreciation Methods ABC Co purchased a truck on January 1, 2015 for $25,000; it cost $2500 to have it delivered, $1500 to have it installed, and taxes and title fees were $600 and $400, respectively. The truck has an estimated salvage value of $6,000 and is expected to last 5 years and 150,000 miles. Calculate depreciation expense and book value for each year under the Straight Line Method and the Double Declining Balance. (10 Points each)                  Straight Line                                            Double-Declining...
A depreciable asset is purchased for $50,000. The expected salvage value is zero at the end...
A depreciable asset is purchased for $50,000. The expected salvage value is zero at the end of it’s 8 year useful life. Compute the depreciation schedule by using double declining balance (DDB) to switch over straight line depreciation. Also, determine the book value of the asset after 6 years.
Double-Declining-Balance Depreciation A building acquired at the beginning of the year at a cost of $76,400...
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 $
E 9-3A. Depreciation Methods A delivery truck costing $20,000 is expected to have a $2,000 salvage...
E 9-3A. Depreciation Methods A delivery truck costing $20,000 is expected to have a $2,000 salvage value at the end of its useful life of four years of 100,000 miles.  Assume that the truck was purchased on January 2.  Calculate the depreciation expense for the second year using each of the following depreciation methods: (a) straight-line, (b) double-declining balance, and (c) units-of-production.  (Assume that the truck was driven 30,000 miles in the second year.) a. Straight-line depreciation = (Acquisition Cost - Salvage value)...
On May 31, 2016, Sandals report purchased a truck at a cost of $160,000. before placing...
On May 31, 2016, Sandals report purchased a truck at a cost of $160,000. before placing the truck into service, The company spend $2,500 painting it, $500 replacing tires, and $5,000 overhauling the engine. The truck should remain in service for 5 years and have a residual value of $7,500. The truck’s annual mileage is expected to be 15,000 in each of the first two years and 10,000 miles in the next three years. In deciding which depreciation method to...
1) Depreciation computed under double−declining−balance will decrease each year because: A.the book value used in the...
1) Depreciation computed under double−declining−balance will decrease each year because: A.the book value used in the computation each year increases B.the rate used in the computation each year decreases C.the book value used in the computation each year decreases D.the rate used in the computation each year increases 2) At the end of an asset's useful life, the balance in Accumulated Depreciation will: A.be greater under units−of−production depreciation than under straight-line depreciation B. be a greater amount under straight-line depreciation...
Deuce Company purchased a truck for $80,000 on January 1, 2018. The asset has an expected...
Deuce Company purchased a truck for $80,000 on January 1, 2018. The asset has an expected salvage value of $8,000 at the end of its five-year useful life. Calculate depreciation expense in 2019 (the second year) under: Straight-line depreciation? (2 points) Double-declining balance depreciation? (3 points) Sum-of-years digits depreciation? (3 points)
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT