Homework Answers
| Calculation of book value at the time of sale: | |||||||
| Year | Beginning Book Value | Depreciation Percent | Depreciation Amount-workings | Accumulated Depreciation Amount | Ending Book Value | Remarks | |
| 2015 | 8,59,711 | 1.00% | -1,403 | -1,403 | 8,61,114 | Depreciation has been provided for full quarter | |
| 2016 | 8,61,114 | 4.00% | -5,612 | -7,015 | 8,66,726 | ||
| 2017 | 8,66,726 | 4.00% | -5,612 | -12,627 | 8,72,338 | ||
| 2018 | 8,72,338 | 4.00% | -5,612 | -18,239 | 8,77,950 | ||
| 2019 | 8,77,950 | 4.00% | -5,612 | -23,851 | 8,83,562 | ||
| 2020 | 8,83,562 | 4.00% | -5,612 | -29,463 | 8,89,174 | ||
| 2021 | 8,89,174 | 4.00% | -5,612 | -35,075 | 8,94,786 | ||
| 2022 | 8,94,786 | 4.00% | -5,612 | -40,687 | 9,00,398 | ||
| 2023 | 9,00,398 | 4.00% | -5,612 | -46,299 | 9,06,010 | ||
| 2024 | 9,06,010 | 4.00% | -5,612 | -51,911 | 9,11,622 | ||
| 2025 | 9,11,622 | 4.00% | -5,612 | -57,523 | 9,17,234 | ||
| 2026 | 9,17,234 | 4.00% | -5,612 | -63,135 | 9,22,846 | ||
| 2027 | 9,22,846 | 4.00% | -5,612 | -68,747 | 9,28,458 | ||
| 2028 | 9,28,458 | 4.00% | -5,612 | -74,359 | 9,34,070 | ||
| 2029 | 9,34,070 | 4.00% | -1,403 | -75,762 | 9,32,667 | Depreciation has been provided for full quarter | |
| Conclusion:Hence Remaining book value at the time of sale is 932667 | |||||||
| Working note 1: | |||||||
| 1 Full year depreciation is calculated as: | |||||||
| Value of asset-Scrap value/Useful no of years | |||||||
| 859711-1000000/25.3 | |||||||
| 5612 | |||||||
| Note: | |||||||
| (1) Straight line method is followed. | |||||||
| (2) Renovating cost also included in the purchased cost. | |||||||
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