Partial-Year Depreciation Sandblasting equipment acquired at a cost of $36,000 h
ID: 2422384 • Letter: P
Question
Partial-Year Depreciation Sandblasting equipment acquired at a cost of $36,000 has an estimated residual value of $6,000 and an estimated useful life of 10 years. It was placed into 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 the straight-line method. Depreciation Year 1 $ Year 2 $ b. Determine the depreciation for the current fiscal year and for the following fiscal year by the double-declining-balance method. Depreciation Year 1 $ Year 2 $
Explanation / Answer
cost 36000 30000 salvage 6000 3000 life 10 2250 Depreciation by straight line year 1 year 2 depreciation 2250 3000 (36000-6000)/10 Depreciation by double declining year 1 year 2 depreciation 18000 9000 rate = 1/4 = 25% double rate =50%