Question

pplease help me with the exact calculations of this sums

Use the following table: $ 650,000 Big Sky Farms Partial Balance Sheet April 30, 2020 Property, plant and equipment: Land Building1 Less: Accumulated depreciation Equipment 2 Less: Accumulated depreciation Total property, plant and equipment 260,000 $975,000 715,000 750,000 318,000 432,000 $1,342,000 'The building was purchased on May 3, 2009, and is depreciated to the nearest whole month using the straight-line method. Depreciation is based on a 15-year life, after which it will be demolished and replaced with a new one. The equipment was purchased on November 3, 2017, and is depreciated to the nearest whole month using the double-declining- balance method. The total estimated useful life is 10 years with a residual value of $250,000. Required: 1. Calculate and record depreciation for the year just ended April 30, 2021, for both the building and equipment.

Answer 1

Depreciation on building as per SLM:
Depreciation for the year ended April 30, 2021 = $975,000 / 15 = $65,000

Depreciation for Equipment under Double Declining balance method:
Depreciation as per SLM = ($750,000 - $250,000) / 10 years = $50,000
Depreciation rate SLM = $50,000 / ($750,000 - $250,000) = 10%
Dep. rate as per DDB = 10% * 2 = 20%

Depreciation Schedule Year Book Value Depreciation Depreciation Accumulated Book Value Year Start Percent Expense Depreciation Year End 2018 $750,000 10.00% $75,000 $75,000 $675,000 2019 $675,000 20.00% $135,000 $210,000 $540,000 2020 $540,000 20.00% $108,000 $318,000 $432,000 2021 $432,000 20.00% $86,400 $404,400 $345,600 2022 $345,600 20.00% $69,120 $473,520 $276,480 2023 $276,480 9.58% $26.480 $500,000 $250,000

Date	Account Titles	Debit	Credit
April 30, 2021	Depreciation expense, Building	$65,000
	Accumulated Depreciation		$65,000
April 30, 2021	Depreciation expense, Equipment	$345,600
	Accumulated Depreciation		$345,600