A machine costing $185,000 with a five-year life and $20,000residual value was purchased January 2....

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A machine costing $185,000 with a five-year life and $20,000residual value was purchased January 2....

A machine costing $185,000 with a five-year life and $20,000 residual value was purchased January 2. Compute depreciation for each of the five years, using the double-declining-balance method.

1. Year 1	$
2. Year 2	$
3. Year 3	$
4. Year 4	$
5. Year 5	$

business accounting

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Answer 1

Answer #1

Rate of Depreciation-1/5 x 2-40% Depreciation BookValue Year 1 $185,000 x 0.40 - $74,000 $185,000 $74,000 $111,000 Year 2 S11

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Answer 2

Answer #2

~~[REMOVED]~~

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Answer 3

Answer #3

SOLUTION :

Machine cost = 185000 ($)

Salvage value = 20000 ($)

Useful life = 5 years.

Depreciation rate = 1/5 = 0.20 = 20%

Double depreciation rate = 2 * 20 = 40%

Year Beginning value of BV Depreciation amount Closing BV

($) ($) ($)

1 185000 185000*0.4 = 74000 111000

2 111000 111000*0.4 = 44400 66600

3 66600 66600*0.4 = 26640 39960

4 39960 39960*0.4 = 15984 23976

5 23976 3976 20000

answered by: Tulsiram Garg

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Answer 4

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