Homework Answers
| Double-Declining-Balance Depreciation Schedule | ||||||||
| Depreciation for the Year | ||||||||
| Asset | Book | DDB | Depreciation | Accumulated | Book | |||
| Year | Cost | Value | Rate | Expense | Depreciation | Value | ||
| 2017 | $360,000 | 360000 | 40% | 144000 | 144000 | $216,000 | ||
| 2018 | $216,000 | x | 40% | = | $86,400 | $230,400 | $129,600 | |
| 2019 | $129,600 | x | 40% | = | $51,840 | $282,240 | $77,760 | |
| 2020 | $77,760 | x | 40% | = | $31,104 | $313,344 | $46,656 | |
| 2021 (46656-12000) | $46,656 | x | = | $34,656 | $348,000 | $12,000 | ||
| DDB Rate= 1/ Estimated Life X 2= 1/5X2= 40% | ||||||||
| Thirs year depreciation= 10500-6000=$4500 | ||||||||
| Part-2 |
| Activity: Operating |
| Account Involved: Accumulated Depreciation and Depreciation Expense |
| Balancce sheet Analysis: Accumulated Decreciation decreased asset by 144000 and Depreciation Expense will decrease the stockholder Equity by $144000 |
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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...
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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...
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