Just need help with d) and e). The answer for d) is NOT 45600 or 11400. The answer for e) is NOT 71400 or 53550.
Answers
Working
A |
Cost |
$ 285,600.00 |
B |
Residual Value |
$ 12,000.00 |
C=A - B |
Depreciable base |
$ 273,600.00 |
Year |
Depreciable base |
Formula |
Depreciation expense |
2020 |
$ 273,600.00 |
[273600 x 8/36 x 3months/12months] |
$ 15,200.00 |
2021 |
$ 273,600.00 |
[273600 x 8/36 x 9months/12months] + [273600 x 7/36 x 3/12] |
$ 58,900.00 |
2022 |
$ 273,600.00 |
[273600 x 7/36 x 9months/12months] + [273600 x 6/36 x 3/12] |
$ 51,300.00 |
Working
A |
Cost |
$ 285,600.00 |
B |
Residual Value |
$ 12,000.00 |
C=A - B |
Depreciable base |
$ 273,600.00 |
D |
Life [in years] |
8 |
E=C/D |
Annual SLM depreciation |
$ 34,200.00 |
F=E/C |
SLM Rate |
12.50% |
G=F x 2 |
DDB Rate |
25.00% |
Year |
Beginning Book Value |
Depreciation rate |
Depreciation expense |
Ending Book Value |
2020 |
$ 285,600.00 |
25.00% |
$ 17,850.00 [$ 285600 x 25% x 3/12] |
$ 267,750.00 |
2021 |
$ 267,750.00 |
25.00% |
$ 66,937.50 |
$ 200,812.50 |
Just need help with d) and e). The answer for d) is NOT 45600 or 11400....
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