Partial-Year Depreciation Sandblasting equipment acquired at a cost of $64,000 h

Question

Partial-Year Depreciation

Sandblasting equipment acquired at a cost of $64,000 has an estimated residual value of $4,000 and an estimated useful life of eight years. It was placed in service on April 1 of the current fiscal year, which ends on December 31.

a. Determine the depreciation for the current fiscal year and for the following fiscal year by straight-line method.
Depreciation
Year 1 ? $
Year 2 ? $

b. Determine the depreciation for the current fiscal year and the following fiscal year by the double-declining-balance method.
Depreciation
Year 1 ? $
Year 2 ? $

Explanation / Answer

a)April 1 to december 31 9 months =(9/12)year =0.75 year depreciation =[(cost-residual value)/life] =[(64000-4000)/8]=$7500 depreciation for for current fiscal year =$7500*0.75 =$5625 b)depreciation=cost/(life/2) =(64,000)/(8/2)=$16,000 depreciation for for current fiscal year =$16000*0.75=$12,000

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---