Answer each of the following questions. Assume the asset was purchased at the beginning of the...

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Answer each of the following questions. Assume the asset was purchased at the beginning of the year. 1. A plant asset purchas

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Answer 1

Answer #1

1) Double decline rate = 100/10*2 = 20%

Depreciation expense second year = 925000*80%*20% = $148000

2) Depreciation for third year = (814000-74000)*3/15 = $148000

3) Accumulated depreciation = (999000-166500/5)*2 = 333000

Book value = 999000-333000 = 666000

Gain on sale of plant assets = 703000-666000 = 37000

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Answer 2

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