Homework Answers
Straight line method depreciation =( purchase price - residual value)/ no. of years = $(22900-1600)/4 = $5325
Double declining depreciation = 2*straight line method depreciation% * Book Value = 2*25%*21300
Straight line % = 100%/4= 25%
| Year | Depreciation | Accumulated Depreciation | Book Value |
| 1 | 10650 | 10650 | 21300 |
| 2 | 5325 | 15975 | 10650 |
| 3 | 2662.5 | 18637.5 | 5325 |
| 4 | 1331.25 | 19968.75 | 2662.5 |
| Total | 19968.75 |
| Year | Depreciation | accumulated depreciation | Book value |
| 1 | 19000/106000*21300= 3817.92 | 3817.92 | 21300-3817.92=17482.08 |
| 2 | 32000/106000*17482.08=5277.61 | 9095.53 | 17482.08-5277.61=12204.47 |
| 3 | 21000/106000*12204.47= 2417.87 | 11513.40 |
12204.47-2417.87=9786.6 |
| 4 | 25000/106000*9786.6= 2308.16 | 13821.56 | 9786.6-2308.16= 7478.44 |
| 13821.56 |
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