Straight Line Method | |||||
Cost of the equipment | $ 460,000.00 | ||||
Salvage value | $ 10,000.00 | ||||
Depreciable cost | $ 450,000.00 | ||||
Useful life | 10 | years | |||
Depreciation Expense per year | $ 45,000.00 | ||||
($ 450000 / 10) | |||||
Journal Entry | |||||
Depreciation Expense | $ 45,000.00 | ||||
To Accumulated Depreciation | $ 45,000.00 | ||||
Balance Sheet Presentation | |||||
Assets | |||||
PP&E | $ 460,000.00 | ||||
Less: Accu. Dep | $ 135,000.00 | $ 325,000.00 |
Double Declining Balance Method | |||||
Useful life | 10 | years | |||
Rate of depreciation [(100% / 10 years) x 2] | 20% | ||||
Beginning | Accumulated | Ending | |||
Date | Cost | WDV | Amortization | Amortization | WDV |
31/12/2022 | $ 460,000.00 | $ 460,000.00 | $ 92,000.00 | $ 92,000.00 | $ 368,000.00 |
31/12/2023 | $ 368,000.00 | $ 73,600.00 | $ 165,600.00 | $ 294,400.00 | |
31/12/2024 | $ 294,400.00 | $ 58,880.00 | $ 224,480.00 | $ 235,520.00 | |
Balance Sheet Presentation | |||||
Assets | |||||
PP&E | $ 460,000.00 | ||||
Less: Accu. Dep | $ 224,480.00 | $ 235,520.00 |
Cost of the equipment | $ 460,000.00 | |||
Salvage value | $ 10,000.00 | |||
Depreciable cost | $ 450,000.00 | |||
Estimated units of production | $ 450,000.00 | |||
Depreciation expense per unit | $ 1.00 | |||
Units produced in 2025 | 40000 | |||
Depreciation expense (40000 x $ 1) | $ 40,000.00 |
Capital Assets - Amortiration QUESTION #4 2022 for cash Tulo Company purchased equipment in the amount...
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