Question

2) Given that Twist Ltd purchased equipment on 1 January 2006 at cost of $33,000. Management expects the equipment to have a

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Depreciation schedule for asset having life of 4 years, acuired at cost of 33,000 & residual value of 3000

Depreciation per annum:
Asset value 33000
Residual value ₹ 3,000.00
Depreciable value 30000
Number of years 4
Depreciation per annum 7500
Year Beginning book value Depreciation Expense Accumulated Depreciation Ending book value
2006 33000 7500 7500 25500
2007 25500 7500 15000 18000
2008 18000 7500 22500 10500
2009 10500 7500 30000 3000

Accelerated depreciation using Double declining method

Depreciation per annum:
Asset value 33000
Residual value ₹ 3,000.00
Depreciable value 30000
Number of years 4
Depreciation per annum 7500
Depreciation under double declining method : 15000

% depreciation post 1st year

50% depreciation in Y1

50%
Year Beginning book value Depreciation Expense Accumulated Depreciation Ending book value
2006 33000 15000 15000 18000
2007 18000 9000 24000 9000
2008 9000 4500 28500 4500
2009 4500 2200 30750 2250
Add a comment
Know the answer?
Add Answer to:
2) Given that Twist Ltd purchased equipment on 1 January 2006 at cost of $33,000. Management...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Lab task 2 2) Given that Twist Ltd purchased equipment on 1 January 2006 at cost...

    Lab task 2 2) Given that Twist Ltd purchased equipment on 1 January 2006 at cost of $33,000 Management expects the equipment to have a useful life of four years. At the end of four years, the estimated sale value of the equipment's is $3,000 Required Using the above information: A. Calculate the straight line depreciation amount and complete the straight line depreciation schedule for 2006 to 2009. What is the ending book value year 2007? Accumulated depreciation amount in...

  • Brenan, Inc. purchased equipment at the beginning of 2004 for $2,100,000. Brenan. The equipment has an...

    Brenan, Inc. purchased equipment at the beginning of 2004 for $2,100,000. Brenan. The equipment has an estimated residual value (salvage value) of $100,000 and an estimated life of 5 years or 100,000 hours of operation. The machinery was operated for 15,000 hours in 2004, 20,000 hours in 2005, 35,000 hours in 2006, 20,000 hours in 2007, and 10,000 hours in 2008.....Create a depreciation schedule for Straight-line depreciation method ....Cost ..Book Value (beginning) ..Depreciation Expense ..Accumulated Depreciation ..Book Value (ending), Units...

  • Crispy Fried Chicken bought equipment on January 22​, 2018, for $33,000. The equipment was expected to...

    Crispy Fried Chicken bought equipment on January 22​, 2018, for $33,000. The equipment was expected to remain in service for four years and to operate for 6,750 hours. At the end of the​ equipment's useful​ life, Crispy estimates that its residual value will be $6,000. The equipment operated for 675 hours the first​ year, 2,025 hours the second​ year,2,700 hours the third​ year, and 1,350 hours the fourth year. Requirement 1. Prepare a schedule of depreciation​ expense, accumulated​ depreciation, and...

  • Financial Aceounting 4A Test 3 (Ch. 9, 10, 11, 17) - Problems Portion Name Problems. There...

    Financial Aceounting 4A Test 3 (Ch. 9, 10, 11, 17) - Problems Portion Name Problems. There are four problems. Each one is worth the score indicated next to the problem number. Show all work for complete credit. You may wlach extra pages if you so desire. Please he NEAT when writing your answers. I cannot grade illegible answers Problems portion of the test is worth a total of 30 points. 1. (10 points) Breman, Inc. purchased equipment at the beginning...

  • E9-20 (book/static) 18 Question Help Crispy Fried Chicken bought equipment on January 2, 2018, for $33,000....

    E9-20 (book/static) 18 Question Help Crispy Fried Chicken bought equipment on January 2, 2018, for $33,000. The equipment was expected to remain in service for four years and to operate for 6,750 hours. At the end of the equipment's useful life, Crispy estimates that its residual value will be $6,000. The equipment operated for 675 hours the first year, 2,025 hours the second year, 2,700 hours the third year, and 1,350 hours the fourth year. Read the requirements. Requirement 1....

  • Peyton's Machine Shop purchased new equipment for a total amount of $250,000. The equipment is expected...

    Peyton's Machine Shop purchased new equipment for a total amount of $250,000. The equipment is expected to last 6 years and have a residual/scrap/salvage value of $8,000 at the end of that life. Usage of the equipment is tracked in machine hours and the equipment in total is expected to last 35,000 hours. During year one 12,000 hours were used, during year two 5,000 hours were used, during year three 7,500 hours were used, during year four no hours were...

  • Cracking Fried Chicken bought equipment on January 2, 2018, for $42 000. The equipment was expected...

    Cracking Fried Chicken bought equipment on January 2, 2018, for $42 000. The equipment was expected to remain in service for four years and to open for 12.000 hour. Al the end of the equipment's useful life Crackling estimates that its residual value will be $6,000. The equipment operated for 1.200 hours the frst year. 3.800 hours the second year, 4.800 hours the third year, and 2.400 hours the fourth year. Read the requirements Requirement 1. Prepare a schedule of...

  • Golden Fried Chicken bought equipment on January 2, 2018, for $21,000. The equipment was expected to...

    Golden Fried Chicken bought equipment on January 2, 2018, for $21,000. The equipment was expected to remain in service for four years and to operate for 6,000 hours. At the end of the equipment's useful life, Golden estimates that its residual value will be $3,000. The equipment operated for 600 hours the first year, 1,800 hours the second year, 2,400 hours the third year, and 1,200 hours the fourth year. Read the requirements. Requirement 1. Prepare a schedule of depreciation...

  • Mama's Fried Chicken bought equipment on January 2, 2018, for $18,000. The equipment was expected to...

    Mama's Fried Chicken bought equipment on January 2, 2018, for $18,000. The equipment was expected to remain in service for four years and to operate for 5,000 hours. At the end of the equipment's useful life, Mama's estimates that its residual value will be $3,000. The equipment operated for 500 hours the first year, 1,500 hours the second year, 2,000 hours the third year, and 1,000 hours the fourth year. Read the requirements. Requirement 1. Prepare a schedule of depreciation...

  • Southern Fried Chicken bought equipment on January 2, 2016, for $15,000. The equipment was expected to...

    Southern Fried Chicken bought equipment on January 2, 2016, for $15,000. The equipment was expected to remain in service for four years and to perform 4,000 fry jobs. At the end of the equipment's useful life, Southern estimates that its residual value will be $3,000. The equipment performed 400 jobs the first year, 1,200 the second year, 1,600 the third year, and 800 the fourth year. Requirements 1. Prepare a schedule of depreciation expense, accumulated depreciation, and book value per...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT