Ans. | One hundred fifty percent deprecation method : | ||||||
Depreciation rate = 1 / life of assets * 150% | |||||||
1 / 10 * 150% | |||||||
15% | |||||||
*Depreciation = Remaining value at the beginning of the year * Double declining balance depreciation rate | |||||||
DDB Depreciation for the Period | End of Period | ||||||
Year | Beginning of period | Depreciation | Depreciation | Accumulated | Book | ||
Book value | Rate | Expenses (a * b) | Depreciation | Value | |||
2021 | $331,000 | 15% | $49,650 | $49,650 | $281,350 | ||
2022 | $281,350 | 15% | $42,203 | $91,853 | $239,148 | ||
So the depreciation expense for year 2021 and 2022 are : | |||||||
Year | Depreciation expenses | ||||||
2021 | $49,650 | ||||||
2022 | $42,203 | ||||||
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