New furniture has a cost of $34000 and a 7 year depreciation life. The estimated Salvage...
New furniture has a cost of $34000 and a 7 year depreciation life. The estimated Salvage Valus is Zero at the end of 7 years. Determine the annual depreciation amounts using the 200% Declining Balance with Switchover to Straight line. *Tabulate the annual depreciation amounts and the book value at the end of each year
Homework Answers
Sol : furniture cost =$34000 depreciation life =7 year
Salvage value =0
Under the straight line depreciation method
Annual depreciation =34000/7=4857.14 (0 salvage value)
- Here 4857.14 is depreciation expense. Now we have to find that what percent is it of total amount ($3 4000)
= 4857.14/34000 =0.1429 =14.29%
- Now for 200% method, multiply (2×14.29)=28.58
Depreciation calculation using the 200 percent double declining balance method :-
| Year | applicable %dep. Rate | Start carrying value |
Depreciation expence
|
Ending carrying value |
| 1 | 28.58 | 34000 | 9717.2 | 24282.8 |
| 2 | 28.58 | 24282.8 | 6940.02 | 17342.78 |
| 3 | 28.58 | 17342.78 | 4956.57 | 1238.21 |
| 4 | 28.58 | 12386.21 | 3539.98 | 8846.23 |
| 5 | 28.58 | 8846.23 | 2528.25 | 6317.98 |
| 6 | 28.58 | 6317.98 | 1805.67 | 4512.3 |
7 28.58 4512.3 1289.62 0
+3222.68
Special adjustment for final year.
The final year adjustment was calculated because the carrying value at the end of 7 year is zero.
Add Answer to:
New furniture has a cost of $34000 and a 7 year
depreciation life. The estimated Salvage...
On June 1, a machine costing $660,000 with a 5-year life and an estimated $50,000 salvage...
On June 1, a machine costing $660,000 with a 5-year life and an
estimated $50,000 salvage value was purchased. It was also
estimated that the machine would produce 200,000 units during its
life. Actual production would be 40,000 units per year for all five
years.
Using the depreciation template provided, determine the amount
of depreciation expense for the third year under each of the
following assumption
The company uses the double-declining-balance method of
depreciation.
50 Cast Salvage value Depreciable cost...
3(a) A machine has a life of 20 years, costs $200,000 and has an estimated salvage...
3(a) A machine has a life of 20 years, costs $200,000 and has an estimated salvage value of $10,000. (i) For the Straight Line method of depreciation, what is the depreciation rate and what is the book value at the end of year 10? (ii) If the declining balance method is to be used, at what depreciation rate (i.e. the capital cost allowance CCA rate), the book value at the end of year 10 will be the same as for...
Depreciation Schedules Barb's Florists Name: Cost Expected salvage value Estimated useful life in years Estimated useful...
Depreciation Schedules Barb's Florists Name: Cost Expected salvage value Estimated useful life in years Estimated useful life in miles $13.000 $1.000 Purchased new truck Jan 1, 2012 Sold Dec 31, 2013 for $7,500 100 Complete A, B, C, D Intro thru SL Depr 8 min >> A. Prepare the straight line depreciation table. Straight-line Year Depr% Deprec Exp Purchase Notes calculations Truck Date of Purchase Accum Book Value Depreciation Rate Cost Salvage Value Depeche Cost 1st year Months Date of...
You have a tax basis of $80,000 and a useful life of five years and no...
You have a tax basis of $80,000 and a useful life of five years and no salvage value. Provide a depreciation schedule (dk for k=1-5) for 200% declining balance with switchover to straight line. Specify the year to switchover. Determine the depreciation amounts using the 200% declining balance and straight-line methods and BV amounts for each year. (Round to the nearest dollar.) 200% DB Method, $ Depreciation SL Method, $ Amount Selected, Year BVk; $
Bramble Corporation purchased machinery on January 1.2022. at a cost of $256.000. The estimated useful life...
Bramble Corporation purchased machinery on January 1.2022. at a cost of $256.000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of $30,600. The company is considering different depreciation methods that could be used for financial reporting purposes. Prepare separate depreciation schedules for the machinery using the straight-line method, and the declining-balance method using double the Straight-line rate. STRAIGHT-LINE DEPRECIATION End of Year Computation Depreciable Cost X Depreciation...
On January 4, 2019, Columbus Company purchased new equipment for $693,000 that had a useful life...
On January 4, 2019, Columbus Company purchased new equipment for
$693,000 that had a useful life of four years and a salvage value
of $53,000.
Required:
Prepare a schedule showing the annual depreciation and end-of-year
accumulated depreciation for the first three years of the asset’s
life under the straight-line method, the sum-of-the-years’-digits
method, and the double-declining-balance method.
Analyze:
If the double-declining balance method is used to compute
depreciation, what would be the book value of the asset at the end...
company purchased new furniture at a cost of $14.000 on September 30. The furniture is estimated...
company purchased new furniture at a cost of $14.000 on September 30. The furniture is estimated to have a useful life of 8 years and a salvage value of $2.000 The company uses the straight-line method of depresion. What is the book value of the furniture on December 31 of the first year?
Cost 55,000 Life 7 years Salvage - 9,000 Calculate the Depreciation over the 7 years using...
Cost 55,000 Life 7 years Salvage - 9,000 Calculate the Depreciation over the 7 years using . 1- Straight Line 2 sum of the digits 3 Double declining balance . 4 One of the MACRS for 7 year property in the 2017 tax law.
On January 1, Year 1, Fukisan purchased a new piece of equipment for specialized-furniture manufacturing at...
On January 1, Year 1, Fukisan purchased a new piece of
equipment for specialized-furniture manufacturing at a cost of
$300,000, inclusive of shipping and installation. At the time of
purchase, the equipment had an estimated useful life of 15 years
and an expected salvage value of $10,000 at the end of the 15
years.
For future budgeting purposes, Eric Anderson, CFO of Fukisan
Inc. has asked you to perform the depreciation expense calculations
for Year 2, Year 3, and Year...
A new barcode reading device has an installed cost basis of $24,120 and an estimated service...
A new barcode reading device has an installed cost basis of $24,120 and an estimated service life of ten years. It will have a zero salvage value at that time. The 200% declining balance method is used to depreciate this asset. a. What will the depreciation charge be in year ten? b. What is the book value at the end of year nine? c. What is the gain (or loss) on the disposal of the device if it is sold...
On June 1, a machine costing $660,000 with a 5-year life and an
estimated $50,000 salvage value was purchased. It was also
estimated that the machine would produce 200,000 units during its
life. Actual production would be 40,000 units per year for all five
years.
Using the depreciation template provided, determine the amount
of depreciation expense for the third year under each of the
following assumption
The company uses the double-declining-balance method of
depreciation.
50 Cast Salvage value Depreciable cost...
3(a) A machine has a life of 20 years, costs $200,000 and has an estimated salvage value of $10,000. (i) For the Straight Line method of depreciation, what is the depreciation rate and what is the book value at the end of year 10? (ii) If the declining balance method is to be used, at what depreciation rate (i.e. the capital cost allowance CCA rate), the book value at the end of year 10 will be the same as for...
Depreciation Schedules Barb's Florists Name: Cost Expected salvage value Estimated useful life in years Estimated useful life in miles $13.000 $1.000 Purchased new truck Jan 1, 2012 Sold Dec 31, 2013 for $7,500 100 Complete A, B, C, D Intro thru SL Depr 8 min >> A. Prepare the straight line depreciation table. Straight-line Year Depr% Deprec Exp Purchase Notes calculations Truck Date of Purchase Accum Book Value Depreciation Rate Cost Salvage Value Depeche Cost 1st year Months Date of...
You have a tax basis of $80,000 and a useful life of five years and no salvage value. Provide a depreciation schedule (dk for k=1-5) for 200% declining balance with switchover to straight line. Specify the year to switchover. Determine the depreciation amounts using the 200% declining balance and straight-line methods and BV amounts for each year. (Round to the nearest dollar.) 200% DB Method, $ Depreciation SL Method, $ Amount Selected, Year BVk; $
Bramble Corporation purchased machinery on January 1.2022. at a cost of $256.000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of $30,600. The company is considering different depreciation methods that could be used for financial reporting purposes. Prepare separate depreciation schedules for the machinery using the straight-line method, and the declining-balance method using double the Straight-line rate. STRAIGHT-LINE DEPRECIATION End of Year Computation Depreciable Cost X Depreciation...
On January 4, 2019, Columbus Company purchased new equipment for
$693,000 that had a useful life of four years and a salvage value
of $53,000.
Required:
Prepare a schedule showing the annual depreciation and end-of-year
accumulated depreciation for the first three years of the asset’s
life under the straight-line method, the sum-of-the-years’-digits
method, and the double-declining-balance method.
Analyze:
If the double-declining balance method is used to compute
depreciation, what would be the book value of the asset at the end...
company purchased new furniture at a cost of $14.000 on September 30. The furniture is estimated to have a useful life of 8 years and a salvage value of $2.000 The company uses the straight-line method of depresion. What is the book value of the furniture on December 31 of the first year?
Cost 55,000 Life 7 years Salvage - 9,000 Calculate the Depreciation over the 7 years using . 1- Straight Line 2 sum of the digits 3 Double declining balance . 4 One of the MACRS for 7 year property in the 2017 tax law.
On January 1, Year 1, Fukisan purchased a new piece of
equipment for specialized-furniture manufacturing at a cost of
$300,000, inclusive of shipping and installation. At the time of
purchase, the equipment had an estimated useful life of 15 years
and an expected salvage value of $10,000 at the end of the 15
years.
For future budgeting purposes, Eric Anderson, CFO of Fukisan
Inc. has asked you to perform the depreciation expense calculations
for Year 2, Year 3, and Year...
A new barcode reading device has an installed cost basis of $24,120 and an estimated service life of ten years. It will have a zero salvage value at that time. The 200% declining balance method is used to depreciate this asset. a. What will the depreciation charge be in year ten? b. What is the book value at the end of year nine? c. What is the gain (or loss) on the disposal of the device if it is sold...
Most questions answered within 3 hours.
-
**86 at 40 not 88. please show how got Tr in calculations thank
you
2) The...
asked 23 seconds from now -
McGlaun Company pays its employees every two weeks. The firm
last paid its employees on September...
asked 13 minutes ago -
You have been gifted a Mogwai as a pet and decide to do a little
online...
asked 17 minutes ago -
given the standard of 200 mg/dl and the absorbance of that
standard is 0.640. What is...
asked 20 minutes ago -
Exercise 8-51 Algo
An accounting professor is notorious for being stingy in giving
out good letter...
asked 28 minutes ago -
month
total distribution cost
level of activity (unit produced)
july
230.000
3500
august
250.000
3750
september...
asked 29 minutes ago -
A smoke detector system uses two devices, A and B. If smoke is
present, the probability...
asked 1 hour ago -
Your division head has assigned another important project to you
and your team. This project is...
asked 42 minutes ago -
Under normal use conditions, the Mean Time To Failure of a
heating coil can be modeled...
asked 1 hour ago -
Consider the probability that fewer than 34 out of 116 CDs will
be defective. Assume the...
asked 57 minutes ago -
4J Manufacturing Company uses a job order cost accounting system
and keeps perpetual inventory records. Prepare...
asked 46 minutes ago -
Please write code in C++
using recursive function
Write a program that computes the sequence of...
asked 45 minutes ago