Question

Partial-Year Depreciation Equipment acquired at a cost of $92,000 has an estimated residual value of $6,000 and an estimated useful life of 10 years. It was placed in service on April 1 of the current fiscal year, which ends on December 31. If necessary, round your answers to the nearest cent. a. Determine the depreciation for the current fiscal year and for the following fiscal year by the straight-line method. Depreciation Year 1 Year 2 b. Determine the depreciation for the current fiscal year and for the following fiscal year by the double-declining-balance method. Depreciation Year 1 पी Year 2 पी

Answer 1

Straight line depreciation / Annual Depreciation Expense Depreciation Expense Choose Numerator Choose Denominator (Cost of Machinery-Salvage value / / Life of the Machinery 86000 10 8600 Year 1 Depreciation Year 2 Depreciation 6450 8600 Year 1 Depreciation 8600 9/12 6450 Working Notes:

Double decline method Annual Depreciation Expense Depreciation expense Choose Factors(%) Choose Factors: X Depreciation rate 20% Cost х Year 1 Depreciation 92000 13800 х Year 2 Depreciation 20% 78200 15640 х Depreciation rate = (1/10)*2 = 20% 20% *9 /12 13800 Working notes: Year 1 Depreciation 92000