Question

ABC Company purchased equipment on January 1, 2009 for $72,000. It was estimated that the equipment would have a $5,000 salvage value at the end of its 5-year useful life. It was also estimated that the equipment would produce 100,000 units over its 5-year life. If the company used the double- declining balance method of depreciation, what was the balance of the Accumulated Depreciation of the equipment at December 31, 2011?

Answer 1

Amount Answeg - Double- deelining balowle method Gqrupinent Alc Date Particulass Droount Date Posticulars 2009 To Cash ple 42,000 DeL31 By depreceahoo [NOTE] 2009 Jon 28,800 2010 2010 Du 31 By balance cld 43,200 72,000 72,000 Sami To balance bld 43 200 Du 31 By depreciation 17,280 C43,200 x2x201) De 31 By balance od 25,920 43,200 43,200 Jan To balance ble 25920 ou 31 By depruation 10,368 2011 2011 Du 3) By bolanteed 15,552 25,920 25,920 Note . Scrought-line depriation rate : 45 x 100 = 20% formula ge upreciation under double-ceilining balance method = 2 x Cost of x dyseciali the asset hate Peshculars depreciation = 2 x 72,000 X 20% 2009 depseudbion 28,800 = 28,800 2010 depreciation 17,280 Year 2011 depoustion 10,368 Accumulated depremaidon 56,448 balance