on.com/flow/connecthtml Help Week 1 Practice Problems 6 2 On January 4, 2019, Co
ID: 2403724 • Letter: O
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on.com/flow/connecthtml Help Week 1 Practice Problems 6 2 On January 4, 2019, Columbus Company purchased new equipment for $633,000 that had a useful life of four years and a salva value of $43,000 Required Prepare a schedule showing the annual depreciation and end-of year accumulated depreciation for the first three years of the a Ilfe under the straight-ine method, the sum-of-the years digits method, and the double-declining-balance method 25 Analyze If the double-declining balance method is used to compute depreciation, what woukd be the book value of the asset at the end c 2020? Complete this question by entering your answers in the tabs below. Straight LineDigs Doits DecliningAnalyze Prepare a schedule showing the annual depreciation and end of year accumulated depreciation for the first three years of the asset's life under the straight-line method Salrage Value Useful Life 2020 2021 C Prev 2 of 4 Score answer > 5 6Explanation / Answer
Straight line method
Year
Acquisition cost
salvage value
useful life
annual depreciation =(acquisition cost-salvage value)/no of years
Accumulated depreciation
2019
633000
43000
4
147500
147500
2020
633000
43000
4
147500
295000
2021
633000
43000
4
147500
442500
Double declining method
Straight line rate of depreciation
1/4
25%
double declining rate
.25*2
50%
Year
Book value of machine
Double declining rate
annual depreciation
Accumulated depreciation
Year end balance
2019
633000
50%
316500
316500
316500
2020
316500
50%
158250
474750
158250
2021
158250
50%
79125
553875
79125
Sum of year digit method
sum of year
4+3+2+1
10
Year
Book value of machine
salvage value
sum of year digit
annual depreciation
Accumulated depreciation
2019
633000
43000
4/10
236000
236000
2020
633000
43000
3/10
177000
413000
2021
633000
43000
2/10
118000
531000
Book value of asset at the end of year 2020 using double declining method
(633000-442500)
190500
Straight line method
Year
Acquisition cost
salvage value
useful life
annual depreciation =(acquisition cost-salvage value)/no of years
Accumulated depreciation
2019
633000
43000
4
147500
147500
2020
633000
43000
4
147500
295000
2021
633000
43000
4
147500
442500
Double declining method
Straight line rate of depreciation
1/4
25%
double declining rate
.25*2
50%
Year
Book value of machine
Double declining rate
annual depreciation
Accumulated depreciation
Year end balance
2019
633000
50%
316500
316500
316500
2020
316500
50%
158250
474750
158250
2021
158250
50%
79125
553875
79125
Sum of year digit method
sum of year
4+3+2+1
10
Year
Book value of machine
salvage value
sum of year digit
annual depreciation
Accumulated depreciation
2019
633000
43000
4/10
236000
236000
2020
633000
43000
3/10
177000
413000
2021
633000
43000
2/10
118000
531000
Book value of asset at the end of year 2020 using double declining method
(633000-442500)
190500
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