Homework Answers
| ans 1 | |||||||
| Date | Asset cost | Depreciable cost | Useful life | Dep rate | Dep. Exp | Acc dep | Book value |
| 6000 | 6000 | ||||||
| Year 1 | 5500 | 8 | 687.5 | 687.5 | 4812.5 | ||
| Year 2 | 5500 | 8 | 687.5 | 1375 | 4125 | ||
| Depreciation | 687.5 | ||||||
| if rounded off | 688 | ||||||
| ans b | |||||||
| DDb method | |||||||
| DDb rate 1/8*200% | 25% | ||||||
| Date | Asset cost | Book value | DDB rate | Dep. Exp | Acc dep | Book value | |
| starting | 6000 | 6000 | |||||
| Year 1 | 6000 | 25% | 1500 | 1500 | 4500 | ||
| Year 2 | 4500 | 25% | 1125 | 2625 | 3375 | ||
| Year 3 | 3375 | 25% | 843.75 | 3468.75 | 2531.25 | ||
| Depreciation | 3468.8 | ||||||
| if rounded off | 3469 | ||||||
| ans c rates not provided | |||||||
| ans d | |||||||
| Date | Asset cost | Depreciable cost | Useful life | Dep. Exp | Acc dep | Book value | |
| 6000 | 6000 | ||||||
| Year 1 | 5500 | 8 | 687.5 | 687.5 | 4812.5 | ||
| Year 2 | 5500 | 8 | 687.5 | 1375 | 4125 | ||
| Year 3 | 5500 | 8 | 687.5 | 2062.5 | 3437.5 | ||
| Book value is | 3437.5 | ||||||
| if rounded off | 3438 | ||||||
| If any doubt please comment | |||||||
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