Homework Answers
Ans:
1.Ans:True
Under Double Declining balance method ,Depreciation is charged double than straight line method of depreciation
SO Total Depreciation expense over the 5 years will be more the double –declining balance method than straight line method
2.Ans:False
AS Per GAAP, Once a Company selects the depreciation method they can choose different depreciations method depends on use, and life expectancy for their subsequent fixed asset Acquisition .
3.Ans: $45,600
Book value for December 31,2019 is =Purchase price-Accumulated depreciation
=$72,000-$26,400=$45,600
Accumulated depreciation=2 Years * Yearly Depreciation=13,200*2=$26,400
Yearly Depreciation=Purchase price-Salvage value/Number of Years of Life
=$72,000-$6000/5=$13,200
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3. Record the Depreciation Expense for the period under the
double-declining-balance method.
4.Record the Depreciation Expense for the period under the
activity-based method.
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3. Record the Depreciation Expense for the period under the
double-declining-balance method.
4.Record the Depreciation Expense for the period under the
activity-based method.
Required: 1. Use your spreadsheet to recalculate Depreciation Expense, Accumulated Depreciation, and the Book Value for Year 6 under each method. Note your revised values below. Double-Declining- Balance Activity-Based Straight-Line Depreciation Expense Accumulated Depreciation 16,711 S 14,100 $ 18,612 18,612 wwww 14,100 16,711 Book Value 112,800 112,800 .. 112,800 2. Prepare the journal entry to record depreciation...
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