On January 1, 20X2, The GenKota Winery purchased a new bottling system. The syst
ID: 2454339 • Letter: O
Question
On January 1, 20X2, The GenKota Winery purchased a new bottling system. The system has an expected life of 5 years. The system cost $325,000. Shipping, installation, and set up was an additional $35,000. At the end of the useful life, Julie Hayes, chief accountant for GenKota, expects to dispose of the bottling system for $96,000. She further anticipates total output of 660,000 bottles over the useful life.
I need the double declining balance:
Year Annual Expense Accumulated Depreciation at End of Year Annual Expense Calculation X2 X3 X4 X5 X6Explanation / Answer
Total Cost price 325000 Shipping Cost 35000 Total Cost 360000 Depreciation Rate = 360000-96000/5 264000 44000 Depreciation rate = 44000/360000 0.122222 Double Declining method rate = 25% Depreciation Expense Depreciation WDV Year 1 360000 360000*25% 90000 270000 2 270000 67500 202500 3 202500 50625 151875 4 151875 37968.75 113906.3 5 113906.3 28476.56 85429.69