Question

N 1.00 points Tory Enterprises pays $240,000 for equipment that will last five years and have a 544,700 salage valu By using the equipment in its operations for five years, the company expects to earn $80,000 annually ste deducting al expenses except depreciation (Round your answers to the nearest whole dollar) Calculate annual depreciation expenses using double-declining-balance method. Depreciation for the Period End of Period Beginning of Period Book Depreciation Annual Accumulated Rate Depreciation De Value Depreciation Depreciation Book Value Year Year 1 Year 2 Year 3 Year 4 Year 5 Total Prepare a table showing income before depreciation, depreciation expense, and net (pretac) income for each year and for the total five-year period, assuming double-declining-balance depreciation Net loss should be indicated with a minus sign.) Income Before Depreciation Depreciation Expense Net (Pretax) Income (Loss) Year 1 Year 2 Year 3 Year Year 5 Totals

Answer 1

Dear Student,

As per the HOMEWORKLIB POLICY, only the first question should be answered. Kindly take note of it.

Depreciation rate = 1/estimated life * 2 = 1/5 *2 = 40%

	Depreciation for the period			End of period
year	Beginning of period book value	Depreciation rate	Annual depreciation	Accumulated deprecation	Book value
Year 1	240600	40%	96240	96240	144360
Year 2	144360	40%	57744	153984	86616
Year 3	86616	40%	34646	188630	51970
Year 4	51970	40%	7270	195900	44700
Year 5	44700	40%	0	195900	44700
Total			195900

year	Beginning of period book value	Depreciation rate	Annual depreciation
Year 1	89600	96240	-6640
Year 2	89600	57744	31856
Year 3	89600	34646	54954
Year 4	89600	7270	82330
Year 5	89600	0	89600
Total	448000	195900	252100