Homework Answers
E1 Straight line depreciation schedule
| Year | Depr. Cost | Rate | Depr. Exp. | Accum. Depr. | Book Value |
| 1 | 36500 | 25% | 9125 | 9125 | 30875 |
| 2 | 36500 | 25% | 9125 | 18250 | 21750 |
| 3 | 36500 | 25% | 9125 | 27375 | 12625 |
| 4 | 36500 | 25% | 9125 | 36500 | 3500 |
Depr. Cost = Cost - Salvage value = $40000 - $3500 = $36500
Rate = 100%/4 years = 25%
E2 Double declining balance
| Year | Book Value Beg. | Rate | Depr. Exp. | Accum. Depr. | Book Value End |
| 1 | 40000 | 50% | 20000 | 20000 | 20000 |
| 2 | 20000 | 50% | 10000 | 30000 | 10000 |
| 3 | 10000 | 50% | 5000 | 35000 | 5000 |
| 4 | 5000 | 1500 | 36500 | 3500 |
Rate = 2 x 25% = 50%
Per HOMEWORKLIB RULES the first question has been answered. Please post the remaining independent questions separately. Thank you.
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