Question

Question 19 View Policies Current Attempt in Progress Vaughan Manufacturing purchased a depreciable asset for $593000 on April 1, 2015. The estimated salvaevalis 550000, and the estimated totalus accumulated depreciation on May 1, 2018 when the asset is sold life is 5 years. The straight-ine method is used for depreciation. What is the balanc

Answer 1

Q.19 Cost of Depreciable Asset = Salvage Value - Useful life = $593,000 $ 56,000 5 years wie I Depreciation for year (using straight aire method) cost of Asset - Salvage valul No. of useful life Depreciation for full year = $593000 - $56,000 = $ 107,400 : Accumulated Depreciation from April 1, 2015 to Dec.31,2015 = $107,400x.9 = $ 80,550 12 from Jan. 1, 2016 to Dec. 31, 2017 = $107, 400 x 2 = $214,800 from Jan 1. 2018 to May 1, 2018 - $107,4004 4 $ 35,800 :: Balance of Accumulated Depreciation on May 1, 2018 when the asset is sold = $3,31,150

Q.17 Depreciation for year using sum of Digits method will be calculated using following formula! - = (Cost - Salvage value) & Remainip useful life Sum of Total digits in Asset's useful life let cost of equipment be se i. Depreciation for year 2018 will be as :- Sum of Total digits . lo +9+8+7+6 +5+4+3+2+1 of Asset useful life = 55 Remaining useful life a 7 years 55 → = => $ 213,500 = (re- 46,300) X 7 $813,500 - Hotel - 324,100 72 = (213,500 + 324,100) 55 55 7x = 12,066,600 x 85 55 = $ 1,723,800 Acquisition cost of Equipment = $ 1,723,800

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