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INAL Chegg Study Guided So X Sign In or Sign Up ! Chec × C D ezto.mheducation.com/hm.tpx ps Bc Home | Brooklyn Coll AOL Mail(23) tpupilPath Dayforce HCM D cuc consumer Servic Mexica Question 10 (of 10) In early January 2013, NewTech purchases computer equipment for S180,000 to use in operating activities for the next four years. It estimates the equipment's salvage value at $39,000 Prepare a table showing depreciation and book value for each of the four years assuming double-declining- balance depreciation Depreciation for the Period End of Period Beginning of Year Period Book Depcation Annual Accumulated Depreciation Depreciation Book Value Rate Value 2013 2014 2015 Tota OType here to searchExplanation / Answer
Answer;
in double declining book value we take double rate deprecation that straight line
So Depreciation as per DDB
=2 x (100/4)
=2x 25 %
=50%
Year
Beginning
of period Book
value
Depreciation
rate
Annual
depreciation
Accumulated
depreciation
Ending
of period Book
value
2013
180,000
50%
90000
90000
90,000
2014
90,000
50%
45000
135000
45,000
2015
45,000
Force
6,000
141000
39,000
2016
39,000
0
141000
39,000
Note : in the third year depreciation amount is adjusted to salvage value of $39,000
Year
Beginning
of period Book
value
Depreciation
rate
Annual
depreciation
Accumulated
depreciation
Ending
of period Book
value
2013
180,000
50%
90000
90000
90,000
2014
90,000
50%
45000
135000
45,000
2015
45,000
Force
6,000
141000
39,000
2016
39,000
0
141000
39,000