Question

Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.] In early January 2017 NewTech purchases computer equipment for $265,000 to use in operating activities for the next four years. It estimates the equipment's salvage value at $29,000. Exercise 8-8 Double-declining-balance depreciation LO P1 Prepare a table showing depreciation and book value for each of the four years assuming double-declining balance depreciation. (Enter all amounts positive values.) ces Depreciation for the Period End of Period Year Beginning-Year Depreciation Book Value Rate Annual Depreciation Accumulated Depreciation Year-End Book Value 2017 2018 2019 2020 Total

Answer 1

Double Declining balance Method Rate of Depreciation = (1/ Life)*2 Depreciation Rate = (1/4)*2 50.0% Double Decline Balance Method DDB Depreciation for the Period End of the Period Year 2017 2018 2019 2020 Beginning Book value 265000 132500 66250 33125 Depreciation | Annula Rate Depreaication 50% 132500 50% 66250 50% 33125 50% 4125 236000 Accumulated Depreciaion 132500 198750 231875 236000 Book Value 132500 66250 33125 29000 Totals