A tractor for over-the-road hauling is purchased for $94,800. It is expected to be of use...
A tractor for over-the-road hauling is purchased for $94,800. It
is expected to be of use to the company for 9 years, after which it
will be salvaged for $18,200. Use double declining balance
depreciation.
Depreciation for year 6 = $
Homework Answers
rate positively ..
| 6th year depreciation = | $5,996 | |||
| ans = | $5,996 | |||
| Total Cost | $94,800.00 | |||
| Expected Life (in years) | 9 | |||
| Salvage Value | $18,200.00 | |||
| Total Depreciation | $76,600.00 | |||
| Depreciation Schedule: Double-Declining-Balance Method | ||||
| Year | Rate | Depreciation | Accumulated Depreciation | Book Value |
| 0 | $0.00 | $0.00 | $94,800.00 | |
| 1 | 2/9 | $21,067 | $21,067 | $73,733 |
| 2 | 2/9 | $16,385 | $37,452 | $57,348 |
| 3 | 2/9 | $12,744 | $50,196 | $44,604 |
| 4 | 2/9 | $9,912 | $60,108 | $34,692 |
| 5 | 2/9 | $7,709 | $67,817 | $26,983 |
| 6 | 2/9 | $5,996 | $73,813 | $20,987 |
| 7 | $2,787 | $76,600 | $18,200 | |
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