Morgana Film Productions Inc. purchased a copier on Jan 1, 2011 for $11,700 with a residual...

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Morgana Film Productions Inc. purchased a copier on Jan 1, 2011 for $11,700 with a residual value of $1200. Useful life is 5

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Answer 1

Answer #1


	Data
	Cost as on 1-Jan-11	11,700
	Residual value	1,200
	Useful life (yrs.)	5
	Useful life (Copies)	1,00,000
	Gain end of year 1	-




Double Declining Balance Using DDB Function
Year		Depreciation expense	Accumulated Depreciation	Book value
2010	0	-		11,700
2011	1	4,680	4,680	7,020	Cost	11,700
2012	2	2,808	7,488	4,212	Salvage	1,200
2013	3	1,685	9,173	2,527	Life	5
2014	4	1,011	10,184	1,516	Reference
2015	5	316	10,500	1,200	Formula	=DDB(cost, salvage, life, period, (Factor))


a)	Depreciation expense in 2011 & 2012
	$4,680	in 2011
	$2,808	in 2012

b)	Accumulated depreciation at the end of 2012
	$7,488

C)	Book value at the end of 2012
	$4,212

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Answer 2

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Morgana Film Productions Inc. purchased a copier on Jan 1, 2011 for $11,700 with a residual...

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