Question

Required Information [The following information applies to the questions displayed below) In early January 2017 NewTech purchases computer equipment for $262,000 to use in operating activities for the next four years. It estimates the equipment's salvage value at $21000. Prepare a table showing depreciation and book value for each of the four years assuming double-declining balance depreciation. (Enter all amounts positive values.) End of Period Accumulated Depreciation Year-End Book Value 2017 Depreciation for the Period Begini-Year Depreciation Annu Book Value Depreciation 262.000 50% 131000 50% 65.500 50 32.750 SON 5 0 131,000 65.500 32.750 2015 2030 To SAMSUNG

i tried to start but think i have it all wrong. please help

Answer 1

Given cost of equipment $ 2,62,000 $ 21,000 usoful life Salvage value 4 years . as Depreciation por straight line Cost of equipment - Salvage value useful life of assets 60, 250 262000 - 2000 4 X lou per straight line Depreciation rate as Depreciation cost of equip - Salvage value 60250 x 100 = 25,4 241000 .: Depreciation rate as per & LM = 25% Depreciate rate as pee Dep rate as per x 2 double balancing declining dep Straigh line 251. x2 Calculation of depreciation for Book value 6- Depreciation for the period End of Period Beginning Year Accumulated Year End Year Book valu! Depreciation Depreciation Book Value 2013 $ 262000 50% (31000 131000 131000 2018 131000 65500 50% GSDO 196500 2019 65,500 50% 32750 229 250 32750 2020 32,750 50% 16375 241000 21000 Annual DeP. Rate Total 245625 Due to Double declining balance method, Annual Depreciation increased from 241000 (sum) to 245625$