Ans-1-Straight line rate= 1/ 12* 100= 8.33%
DDB rate= 2*8.3333= 16.6667%
20x1- $250,000*16.6667% *8/12 months= $27,777.8333
Book Value at the end of 20x1= $250,000-$27,777.8333= $222,222.1667
20x2- $222,222.1667* 16.6667%= $37,037.10
Book Value at the end of 20x2- $222,222.1667-$37,037.10= $185,185
Hence the correct option is b- $185,185
Ans-2 Straight line rate = 1/10* 100= 10%
DDB rate= 2 *10%= 20%
20x1- $200,000 *20% *6/12 months= 20,000
Book value at the end of 20x1= $200,000-$20,000= $180,000
20x2- $180,000 *20%= $36,000
20x2 depreciation expenses- $36,000
Hence, the correct option is d-$36,000
Ans-3-Straight line rate= 1/12*100= 8.333%
DDB rate= 2*8.333% = 16.6667%
Year | Depreciation Expenses | Accumulated Depreciation | Book Value at the end of year |
20x1 |
$83,333 ($500,000*16.667%) |
$83,333 |
$416,667 ($500,000-$83,333) |
20x2 |
$69,444 ($416,667*16.6667%) |
$152,777 ($69,444+$83,333) |
$347,223 ($416,667-$69,444) |
20x3 |
$57,870 ($347,223* 16.6667%) |
$210,647 ($152,777+$57,870) |
$289,353 ($347,223- $57,870) |
20x4 |
$48,225 ($289,353*16.6667%) |
Hence, the correct option is a. $48,225
Ans-4- Straight line rate= 1/15*100= 6.6667%
DDB rate= 2* 6.6667%= 13.3333%
A machine purchases $250,000 on april 6, 20x1
20x1 depreciation expenses:- $250,000* 13.3333% *9/12 months= $25,000
Hence, the correct option is b- $25,000
Ans-5- Useful life= 10 years, so the straight line depreciation rate= 1/10*100= 10%
DDB rate= 10%* 150%= 10%*1.5= 15%
Depreciation expense for 20x1 is= $200,000*15%* 10/12 months= $25,000
Hence, the correct option is d. $25,000
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