1) What is the cost of assets being depriciated?
$ 54,000 |
2) Salvage Value For Asset
$ 5400 |
Explanation:
1) Double Decling Depreciation Method Rate:
= 100 % ÷ 5 years = 20% * 2 = 40%
2) Depriciation:
= Cost × 40% = Depriciation
= Cost × 40% = $ 21,600
Cost= $ 21,600 ÷ 40%
= $ 54000
3) Salvage Value:
= Cost - Total Depriciation
= $ 54000 - $ 48,600
= $ 5400
Exercise 11-02 Marigold Company acquired a plant asset at the beginning of Year 1. The asset...
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