Question

Question 27 Not yet answered In 2018, Close Co purchased a bus for 502020. The company expects the bus to last for 11 years and should travel about 347692 kilometres (ms) it is expected that the bus will be sold at an auction for $30,000 in the end. During 2018 the bus was used for 30,000 kms Calculate the depreciation expense for the machine 2018 using the straight line method Marked out of 100 FO question Answer Question 28 answered Marked out 1.00 In 2018, Close Co purchased a bus for 502020. The company expects the bus to last for 11 years and should travel about 347002 Klometres (ms) it is expected that the bus will be sold at an auction for $30,000 in the end. During 2018 the bus was used for 30.000 km Calculate the depreciation expense for the machine 2016 using the unit of production method Flag question Answer Question 29 Not yet answered In 2018, Close Co purchased a bus for 502020 The company expects the bus to last for 11 years and should travel about 347692 kilometres (ms) it is expected that the bus will be sold at an auction for $30,000 in the end During 2018 the bus was used for 30,000kms. Calculate the depreciation expense for the machine 2018 using double declining balance method Marked out of 1.00 Flag Questo Answer:

Answer 1

Solution 27:- Depreciation for year 2018= Puchases cost - expected selling price at end ( salvage) / Useful life

= $ 502020 - 30000 / 11 years= $ 52911.

Solution 28:- Depreciation for year 2018 =( Puchases cost - Salvage) / Total Estimated kilometers in Life X Used kilometers in 2018

= ( $ 502020 - $30000) / 347692 kms X 30000 kms = $40727.

Solution 28:- Double declining depreciation rate = 1/ Useful life X 100 X 2 = 1/ 11 X 200= 18.18%

Depreciation for year 2018 = purchased cost X 18.18%= $ 502020 X 18.18%= $ 91267