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Chapter 10 Homework Problems 2.970. The equipment was used for Per company purchased e pment on or for $105,030. The equipmen
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Answer #1
Depreciation expense
a. Straight-line method
Depreciable value= 105030-2970=102060
Year Dep. Expense
1 (105030-2970)/3*9/12= 25515
2 (105030-2970)/3= 34020
3 (105030-2970)/3= 34020
4 (105030-2970)/3*3/12= 8505
OR 102060 Tot.Acc.depn.
(105030-2970)-25515-34020-34020
b. Units of activity method
Depreciable value=105030-2970= 102060
Year Dep. Expense
1 102060/7560*1400 18900
2 102060/7560*2600 35100
3 102060/7560*2300 31050
4 102060/7560*1260 17010
Tot.Acc.depn. 102060
c.Double declining balance method
Depn. Rate by st.line method= 1/3=33.33%
so, depn. Rate by DDB= St.line rate*2=33.33%*2=66.66%  
on the annually declining balance, upto the salvage amt. Is reached.
Depreciable value= 105030
Dep. Exp. Asset bal.
Year 105030
1 105030*66.66%*9/12= 52510 52520
2 52520*66.66%= 35010 17510
3 17510*66.66%= 11672 5838
4 5838-2970= 2868 2970
Tot.Acc.depn. 102060
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