Question

Cosby AG purchased a new plant asset on April 1, 2019, at a cost of €774,000....

Cosby AG purchased a new plant asset on April 1, 2019, at a cost of €774,000. It was estimated to have a service life of 20 years and a residual value of €60,000. Cosby's accounting period is the calendar year.

Instructions
a. Compute the depreciation for this asset for 2019 and 2020 using the sum-of-the-years'digits method.
b. Compute the depreciation for this asset for 2019 and 2020 using the double-decliningbalance method.
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Answer #1

a) Depreciation for 2019 Depreciation for 2020 51,000 -(3/4)*(20/210(60000) 65,450(1/4)*(20/210)*(774000-60000)+(3/4) (19/210

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