Homework Answers
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A. Depreciable Cost= $750000-$70000= 680000
Sum of years digit (Life)= 1+2+3+4+5+6+7+8+9+10+11+12+13+14+15+16=136
Sum of years digit (Yrs remaining)= 11+12+13+14+15+16= 81
Declining balance rate= 100/16= 6.25%
B.
Depreciation exp
SYD method
DB Method
Year 2
75000 (750000-70000)x16/136
43945 (703125x6.25%)
Note: 750000-6.25%=703125
year of sale (i.e. for year 11)
30000 (750000-70000)x6/136
24584 (393345x6.25%)
At the time of sale
SYD method
DB method
Accumulated Depreciation
575000
356655
Book value
175000
393345
C. Entry under SYD Method:
Year 1 = Depreciation A/c. ---Dr. 80000
to Accumulated Depreciation / fixed assets A/c. 80000
Like the above entry ; each year depreciation entry will be done.
Depreciation schedule for the assets(for 10 years):
Year
Depreciation Base
Remaining Life of machine
Depreciation Fraction
Depreciation Expense
1
680000
16
16/136
80000
2
680000
15
15/136
75000
3
680000
14
14/136
70000
4
680000
13
13/136
65000
5
680000
12
12/136
60000
6
680000
11
11/136
55000
7
680000
10
10/136
50000
8
680000
9
9/136
45000
9
680000
8
8/136
40000
10
680000
7
7/136
35000
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Sum-of-Years' Digits, Declining Balance Cost of Equipment: $750,000 Estimated Salvage Value: $70,000 Estimated Life (yrs): 16...
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I just need the BLUE empty spots please? what is the formula for them? Thanks Sum-of-Years'...
I just need the BLUE empty spots please? what is the formula for
them?
Thanks
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Fill
in the blanks.
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I just need the BLUE empty spots please? what is the formula for
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Sum-of-Years' Digits & Declining Balance method $680,000 Depreciable Cost Sum of years digits (life) |Sum of years digits (yrs remaining) 136 81 Declining balance rate 6.25 Depreciation Expense Year 2 SYD Method DB Method $75,000 $30,000 Year pf sale At time of sale SYD Method DB Method Accumulated Depreciation Book Value
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help please
PART Ill INPUT Cost of Equipment Estimated Salvage Value Estimated Life (Yrs) Year of Testing Net Future Cash Flows at 12/31 in year of Testing Fair Value at 12/31 in year of Testing 760,000 00,000 20 2025 500,000 490,000 OUTPUT: SL Method RIGINAL Calculations Depreciable Base Depreciation Expense in first year Years Depreciated AD at 12/31 used for Testing Impairment Testing. this year BV at 12/31 used for Testing Testing Item Impaired? (Yes or No) Impairment Loss A/D...
Straight-Line, Declining-Balance, and Sum-of-the-Years'-Digits Methods A light truck is purchased on January 1 at a cost of $29,830. It is expected to serve for eight years and have a salvage value of $5,430. Calculate the depreciation expense for the first and third years of the truck's life using the following methods. If required, round your answers to the nearest cent. Depreciation Expense Year 1 Year 3 1. Straight-line 2. Double-declining-balance 3. Sum-of-the-years'-digits
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Fill
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