Prepare a depreciation schedule to be used for tax purposes for a $998,400 asset with no...
Prepare a depreciation schedule to be used for tax purposes for a $998,400 asset with no salvage value and a 10-year recovery period using the 200% declining balance method. ignore any special depreciation allowances. report the annual depreciation and the annual book value.
Homework Answers
| Annual Depreciation rate for each year under 200% | |||
| declining balance method = 2 / 10years = 0.20 | |||
| Depreciation Schedule: | |||
| Year | Dep. Rate | Depreciation amount | Book Value (Previous BV - Current Dep.) |
| 0 | (Book Value * Dep rate) | 998400 | |
| 1 | 0.2 | 199680 | 798720 |
| 2 | 0.2 | 159744 | 638976 |
| 3 | 0.2 | 127795 | 511181 |
| 4 | 0.2 | 102236 | 408945 |
| 5 | 0.2 | 81789 | 327156 |
| 6 | 0.2 | 65431 | 261725 |
| 7 | 0.2 | 52345 | 209380 |
| 8 | 0.2 | 41876 | 167504 |
| 9 | 0.2 | 33501 | 134003 |
| 10 | 0.2 | 26801 | 107202 |
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