Question

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.

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

"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 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 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 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 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 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 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 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 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 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)

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