Question

On April 1, 2016, Cyclone's Backhoe Co. purchases a trencher for $294,000. The machine is expected to last five years and have a salvage value of $47,000. Exercise 8-12 Double-declining-balance, partial-year depreciation LO C2 Compute depreciation expense for both years ending December 2016 and 2017 assuming the company uses the double-declining-balance method. (Enter all amounts positive values.) End of Period Depreciation for the Period Beginning of Depreciation Partial Depreciation Annual Period Period Book Value Rate Expense 2016 2017 Accumulated Depreciation Book Value Year 2 Ꮎ

Answer 1

Double Decline Depreciation Depreciation for the period End of Period Depreciation Partial Annual Accumulated Year end Rate Year Depreciation Expenses Depreciation book value 40% 9/12 88200 88200 205800 40% 12/12 82320 170520 | 123480 year Beginning of period Book value 2016 294000 2017 205800 Depreciation rate =( 1/ life of the machine)*2