Computation of the depreciation expense to be recognized under the 200 percent declining-balance method :- | |||||
Double (200%) Declining Balance Method of Depreciation | |||||
Double Declining Balance Depreciation | = | 2 × Straight line Depreciation rate × Book value at the beginning of the year | |||
Cost | = | $ 115,200 | |||
Salvage value | = | $ 23,040 | |||
Useful life | = | 6 | |||
Straight line Depreciation Rate | = | 100 | |||
6 | |||||
= | 16.67% | ||||
Double (200%) Declining Balance Depreciation Rate | = | 2 * 16.67%= 33.33% |
Year | Depreciation for the period | End of Period | ||||
Beginning of Period Book Value | Depreciation Rate | Depreciation Expense | Accumulated Depreciation | Book Value | ||
a | b | c | d = b*c | e | f = b-d | |
Year 1 | 115,200 | 33.33% | $ 38,400 | $ 38,400 | $ 76,800 | |
Year 2 | 76,800 | 33.33% | $ 25,600 | $ 64,000 | $ 51,200 |
Depreciation Expense | |
Year 1 | $ 38,400 |
Year 2 | $ 25,600 |
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Need help figuring out the Depreciation Expense amount for year 1 and 2 Golden Manufacturing Company...
depreciation expense is incorrect and can't figure it
out
Golden Manufacturing Company started operations by acquiring $115,200 cash from the issue of common stock. On January 1, Year 1, the company purchased equipment that cost $115,200 cash, had an expected useful life of six years, and had an estimated salvage value of $23,040. Golden Manufacturing earned $86,530 and $61,420 of cash revenue during Year 1 and Year 2, respectively. Golden Manufacturing uses double-declining-balance depreciation. Required: Prepare income statements, balance sheets,...
Golden Manufacturing Company started operations by acquiring
$113,000 cash from the issue of common stock. On January 1, Year 1,
the company purchased equipment that cost $103,000 cash, had an
expected useful life of five years, and had an estimated salvage
value of $10,300. Golden Manufacturing earned $96,030 and $64,380
of cash revenue during Year 1 and Year 2, respectively. Golden
Manufacturing uses double-declining-balance depreciation.
Golden Manufacturing Company started operations by acquiring $113,000 cash from the issue of common stock....
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need help with this question
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