Question

Equipment costing $400,000 has an estimated useful life of five years and a residual value of...

Equipment costing $400,000 has an estimated useful life of five years and a residual value of $50,000. Complete the table below for each of the five years of useful life using the Double-Declining Balance Method of depreciation.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer:-

Depreciation Schedule-Double Declining Balance Method
YEAR COST $ Depreciation Rate Depreciation $ Accumulated Depreciation $ Book Value $
1 400000 40% 160000 160000 240000
2 40% 96000 256000 144000
3 40% 57600 313600 86400
4 40% 34560 348160 51840
5 40% 1840 350000 50000 Salvage value

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 = 1/5 = 0.20 = 20%
Declining Balance Rate = 2*20% = 40%

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
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.
The cost of an asset is $1,170,000?, and its residual value is $180,000. Estimated useful life...
The cost of an asset is $1,170,000?, and its residual value is $180,000. Estimated useful life of the asset is eight years. Calculate depreciation for the second year using the double-declining-balance method of depreciation.? (Do not round any intermediate? calculations, and round your final answer to the nearest? dollar.)
A machine costing $99,375 with a five-year life and $6,000 residual value was purchased January 2....
A machine costing $99,375 with a five-year life and $6,000 residual value was purchased January 2. Compute depreciation for each of the five years, using the double-declining-balance method. Year 1 $ Year 2 $ Year 3 $ Year 4 $ Year 5
Torge Company bought a machine for $82,000 cash. The estimated useful life was five years and...
Torge Company bought a machine for $82,000 cash. The estimated useful life was five years and the estimated residual value was $7,000. Assume that the estimated useful life in productive units is 171,000. Units actually produced were 45,600 in year 1 and 51,300 in year 2. 1. Determine the appropriate amounts to complete the following schedule. Depreciation Expense for Book Value at the End of Method of Depreciation Year 1 Year 2 Year 1 Year 2 Straight-line Units-of-production Double-declining-balance 2-a....
A machine costing $25,000 with a 5-year life and $1,500 residual value was purchased January 2....
A machine costing $25,000 with a 5-year life and $1,500 residual value was purchased January 2. Compute depreciation for each of the five years, using the double-declining-balance method.
Partial-year depreciation DATA Cost $100,000 Estimated residual value $6,000 Estimated useful life (in years) 8 Placed...
Partial-year depreciation DATA Cost $100,000 Estimated residual value $6,000 Estimated useful life (in years) 8 Placed into service on May 1 End on the fiscal year December 31 Using formulas and cell references, perform the required analysis, and input your answers into the Amounts column. Transfer the numeric results for the green entry cells (C13:C16) into the appropriate fields in CNOWv2 for grading. Amounts Formulas a. Depreciation (Straight-line method), Year 1 Depreciation (Straight-line method), Year 2 b. Depreciation (DDB method),...
A company buys a piece of equipment for $60,000. The equipment has a useful life of...
A company buys a piece of equipment for $60,000. The equipment has a useful life of three years. No residual value is expected at the end of the useful life. Using the double-declining-balance method, what is the company's depreciation expense in the first year of the equipment’s useful life? (Do not round intermediate calculations) $40,000. $20,000. $15,000. $30,000.
22. The cost of an asset is $1,110,000, and its residual value is $300,000. Estimated useful...
22. The cost of an asset is $1,110,000, and its residual value is $300,000. Estimated useful life of the asset is five years. Calculate depreciation for the second year using the double-declining-balance method of depreciation (room on next page). A) $222,000 B) $162,000 C) $266,400 D) $324,000 23. If an asset is disposed of when it is fully depreciated and has no residual value, the business does not need to make a journal entry because the book value is zero....
Equipment acquired at a cost of $66,000 has an estimated residual value of $4,000 and an...
Equipment acquired at a cost of $66,000 has an estimated residual value of $4,000 and an estimated useful life of 10 years. It was placed in service on April 1 of the current fiscal year, which ends on December 31. If necessary, round your answers to the nearest cent. a. Determine the depreciation for the current fiscal year and for the following fiscal year by the straight-line method. b. Determine the depreciation for the current fiscal year and the following...
On July 2, 2017, Vicuna Inc. purchased equipment for $720,000. This equipment has an estimated useful...
On July 2, 2017, Vicuna Inc. purchased equipment for $720,000. This equipment has an estimated useful life of six years and an estimated residual value of $30,000. Depreciation is taken for the portion of the year the asset is used. The asset is a Class 8 asset with a maximum CCA rate of 20%. Vicuna has a December year end. Instructions a) Complete the form below by determining the depreciation expense/CCA and year-end book values/UCC for 2017 and 2018 using...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT