Question

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Current Attempt in Progress Oriole Company purchases equipment on January 1, Year 1, at a cost of $588,000. The asset is expected to have a service life of 12 years and a salvage value of $52,920 Your answer is partially correct. decimal places, es Compute the amount of depreciation for each of Years 1 through 3 using the straight-line depreciation method. (Round answers to 5.125 Depreciation for Year 1 $ 44590 Depreciation for Year 2 $ 4590 Depreciation for Year 3 $ 44590 e Textbook and Media Solution MacBook Air

Answer 1

78 Cost of the Equipment 5880001 Less : Salvage Value 52920 Depreciable Value of the Equipment 535080 Life of the Machine 12 Straight Line Method Annual Depreciation : Depreciable Value / Life annual Depreciation :535080/12 44590 Year Depreciation Year 1 44590 Year 2 44590 Year 3 44590 Sum of the Years Digits Total Sum of the years Depreciation Year & Depreication Fraction Depreiation Function Year 1 82320 (12/78) Year 2 75460 (11/78) Year 3 68600 (10/78) Double Declining balance Method Rate of Depreciation = (1/Life) *2 Depreciation Rate = (1/12)*2 16.67% Double Declining balance Method Depreciation Year Expenses Year 1 98020 Year 2 81680 Year 3 68064

Double Declining balance Method Year Book Value Depreciation % Depreciation Book value 588000 16.67% 98020 489980 2 489980. 4 1 6.67% 81680 408301 3. 408301 16.67% 68064 340237