machinery acquired on the first day of the current fiscal year for $450,000 has an estimated life of 20 years or 50,000 hours and a residual value of $20,000.
calculate depreciation for each of the first 2 years AND book value at the end of each year by each of the following
a)straight line method
b) double declining balance
machinery acquired on the first day of the current fiscal year for $450,000 has an estimated life of 20 years or 50,000 hours and a residual value of $20,000.
calculate depreciation for each of the first 2 years AND book value at the end of each year by each of the following
a)straight line method
b) double declining balance
Related questions
Depreciation by Two Methods; Sale of Fixed Asset
New lithographic equipment, acquired at a cost of $800,000 atthe beginning of a fiscal year, has an estimated useful life offive years and an estimated residual value of $90,000. The managerrequested information regarding the effect of alternative methodson the amount of depreciation expense each year. On the basis ofthe data presented to the manager, the double-declining-balancemethod was selected.
In the first week of the fifth year, the equipment was sold for$135,000.
Required:
1. Determine the annual depreciation expensefor each of the estimated five years of use, the accumulateddepreciation at the end of each year, and the book value of theequipment at the end of each year by the following methods:
a. Straight-line method
| Year | DepreciationExpense | Accumulated Depreciation,End of Year | Book Value, End ofYear |
| 1 | $ | $ | $ |
| 2 | $ | $ | $ |
| 3 | $ | $ | $ |
| 4 | $ | $ | $ |
| 5 | $ | $ | $ |
b. Double-declining-balance method
| Year | DepreciationExpense | Accumulated Depreciation,End of Year | Book Value, End ofYear |
| 1 | $ | $ | $ |
| 2 | $ | $ | $ |
| 3 | $ | $ | $ |
| 4 | $ | $ | $ |
| 5 | $ | $ | $ |
Just need help on part B....
Partial-Year Depreciation
Equipment acquired at a cost of $105,000 has an estimated residual value of $12,000 and an estimated useful life of 10 years. It was placed into service on May 1 of the current fiscal year, which ends on December 31.
a. Determine the depreciation for the current fiscal year and for the following fiscal year by the straight-line method.
| Depreciation | |
| Year 1 | $ 6,200 |
| Year 2 | $ 9,300 |
b. Determine the depreciation for the current fiscal year and for the following fiscal year by the double-declining-balance method.
| Depreciation | |
| Year 1 | $ |
| Year 2 | $ |
