Question

Bridgeport Corporation purchased machinery on January 1, 2022, at a cost of $258.000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that perind of $30,800. The company is considering diffcrent depreciation methods that cou ld be used for financial reporting purposcs Your answer is partially correct Prepare separate depreciation schedules for the machinery using the straight-line method, and the declining-halance method using double the straight-line rate STRAIGHT-LINE DEPRECIATION Computation End of Year - Annual Depreciation Expense Depreciable Cost Accumulated Depreciation Years Depreciation Rate Book Value х $ 2022 227200 25 % 56800 56800 201200 2023 25 56800 113600 144400 227200 170400 2024 227200 25 % 56800 87600 2025 227200 25 % 56800 227200 30800 $ 227200 DOUBLE-DECLINI NG-BALANCE DEPRECIATION End of Year Computation Annual Depreciation Expense Book Value Beginning of Year x Years Depreciation Rate Accumulated Depreciation Book Value $ $ 2022 258000 50 2023 50 2024 50 % 1,450 2025 50

Answer 1

Double Declining Balance Depreciation
	Computation			End of Year
Years	Book value Beginning of year	Depreciation Rate	Annual Depreciation Expense	Accumulated Depreciation	Book Value
2022	258000	50%	129000	129000	129000
2023	129000	50%	64500	193500	64500
2024	64500	50%	32250	225750	32250
2025	32250	50%	1450	227200	30800
			227200