Question

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 year: year 1, 12,000; yea 2, 8,000; year 3, 6,000; year 4, 3,000; year 5, 1,000.

Answer 1

• Depreciation Rate = 100/5*2 = 40%, Depreciation for the year = 450*40% = 180, Depreciation Year 1 = 180, Year 2 = (450-180)*40% = 108, Year 3 = (270-108)*40% =64.8, Year 4 = (162 - 64.8)*40% = 38.88, Year 5 = (97.2 - 38.88)*40% = 23.33.
• Depreciation Rate = 100/4*2 = 50%, Year 1 = 1000*50% = 500, Year 2 = (1000-500)*50% = 250, Year 3 = (500-250)*50% = 125, Year 4 = (250-125) * 50% = 62.5.
• Year 1 = 3000*12000/30000 = 1200, Year 2 = 3000*8000/30000 = 800, Year 3 = 3000*6000/30000 = 600, Year 4 = 3000*3000/30000 = 300, Year 5 = 3000*1000/30000 = 100.