Question

"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."

Answer #1

DDB method ignores salvage value.

Straight-line method (SLM) depreciation rate = 1/Useful life = 1/8 = 0.125

DDB depreciation rate = 2 x SLM rate = 2 x 0.125 = 0.5

DDB depreciation schedule as follows.

DDB Depreciation Schedule | ||||

Year | Beginning-of-year Book Value ($) | Depreciation Rate | Annual Depreciation ($) | End-of-Year Book Value ($) |

1 | 3,00,000 | 0.25 | 75,000 | 2,25,000 |

2 | 2,25,000 | 0.25 | 56,250 | 1,68,750 |

3 | 1,68,750 | 0.25 | 42,188 | 1,26,563 |

4 |
1,26,563 | 0.25 | 31,641 | 94,922 |

"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."

Using the Double Declining Balance (DDB)
depreciation method for equipment with an initial cost of $282,000,
an anticipated useful life of 10 years, and a salvage value of
$35,250, calculate the (a) depreciation rate, d=?,
(b) the Depreciation charge, D=?, at the end of
year 2, and (c) the Book Value, BV=?, at the end
of year 2.

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.

The book value of an asset when using double-declining-balance
depreciation is always greater than the book value from using
straight-line depreciation, except at the beginning and the end of
the asset's useful life, when it is the same.
TRUE OR FALSE?

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...

An equipment at MNS Systems costing $600,000 was depreciated
using the double declining balance (DDB) method. In year four, the
company decided to switch to the straight-line depreciation method.
Determine the depreciation charges in year 4. Assume a depreciable
life of 10 years and a salvage value of $63,331.

what is the amount of double declining balance depreciation for
your four if the cost of an asset is $75,000 the useful life is
five years in the salvage value is $4000 ?

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.

calculate the double declining balance depreciation schedule for
a $450 video camera that will have a salvage value of $50 after 5
years of use.
calculate the double- declining balance depreciation schedule
for $1,000 item that will last four years. What is the estimated
salvage value?
For a fitness center that is purchasing a $3,000 photocopier
expected to produce 30,000 copies calculate the units of production
depreciation schedule if the following numbers of copies are
expected to be made each...

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...

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