Question

ihm AccoCALLENGE 1: X + > • strayersophia.org/spec/accounting-2-challenge-4-1/4/8397/accelerated depreciation 2 myndoors G Campus Login - wc UNIT 4 - CHALLENGE 1: Depreciation 4 Accelerated Depreciation 1 2 6 7 > The machine used to produce color coples cost $250,000 when it was purchased new one year ago. It has an expected life span of five years. The income statement showed the straight line doprocation rate ns 20% Accelerated Deprecia Sophia Tutorial Make my favorite instructor PDF Version Tonoce U Sasa Syan Soyecto Deuti da balance 200 Double Deg De Bo Val Year flag of your Deprec Rate Depreciation Eyni Acund Depreciation Bok Valve Erde WHAT'S COVERED 2 This tutorial will cover the topic of accel Using the double declining balance depreciation method, the book value of the color copy machine at the end of year two will bo Our discussion breaks down as follows: 1. Accelerated Depreciation $ 0W

can you please walk me through the math? The answer is 90,000. I just don't know how they got there.

Answer 1

Cost of the machine= 250000

Useful life = 5 years

Straight line depreciation%= 20%

Double declining balance %= 40%

Year 1 2 3 4 5 bok Value at beginnin Depreciation rate Depreciation ExpAccumulated depreciatior Book value at end 250000 40% 100000 100000 150000 150000 40% 60000 160000 90000 90000 40% 36000 196000 54000 54000 40% 21600 217600 32400 32400 32400 250000 0

2nd year depreciation = 150000 x 40%= 60000

Book value at the end of 2nd year= 150000-60000= 90000