please solve this in straight line method,sum of the year nd performance related method
Straight Line method of Depreciation | in $ | ||||
Cost of the asset | 150000 | ||||
Salvage Value | 30000 | ||||
Estimated life of the asset | 2 years | ||||
Depreciation per annum = | Cost of the asset (-) Scrap Value | ||||
Estimated life of the asset | |||||
= | 150000-30000 | ||||
2 | |||||
= | 120000/2 | ||||
= | 60000 per annum | ||||
Year | Depreciation | Accumulated Deprecaition | Net Book Value | ||
1 | 60,000 | 60000 | 150000-60000 | 90000 | |
2 | 60000 | 120000 | 150000-120000 | 30000 | Residual Value |
Sum of Years Digits Method | in $ | ||||
Cost of the asset | 150000 | ||||
Salvage Value | 30000 | ||||
Estimated life of the asset | 2 years | ||||
Sum of Years Digits (SYD) = | n(n+1)/2 | ||||
Where n = estimated useful life | |||||
SYD = | 2(2+1) / 2 | ||||
= | 3 | ||||
Year | Balance of useful life at the begininning of the year | SYD | % | Annual Depreciation | |
1 | 2 | 2/3 | 66.67% | 80004 | (120000 x 66.67%) |
2 | 1 | 1/3 | 33.33% | 39996 | (120000 x 33.33%) |
100.00% | 120000 | (150000-30000 Residual value) | |||
Performance method of Depreciation | in $ | ||||
Cost of the asset | 150000 | ||||
Salvage Value | 30000 | ||||
Estimated life of the asset | 15000 Hours | ||||
(In Hours) | |||||
Depreciation per hour = | Cost of asset (-) Scrap Value | ||||
No of Estimated life in hours | |||||
= | 150000 (-) 30000 | ||||
15000 Hours | |||||
= | 120000 /15000 | ||||
Per hour rate of Depreciation= | 8 | ||||
Year | Depreciation | Accumulated Deprecaition | Net Book Value | ||
(No of Hours x Rate per Hour) | |||||
1 | 64,000 | 64000 | 150000-64000 | 86000 | |
(8000 x8) | |||||
2 | 56000 | 120000 | 150000-120000 | 30000 | Residual Value |
(7000 x 8) | |||||
please solve this in straight line method,sum of the year nd performance related method 8 Compa...