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Q Search the web.. ? k 1 Practice Problems Help Save a 2 On January 4, 2019, Col

ID: 2403753 • Letter: Q

Question

Q Search the web.. ? k 1 Practice Problems Help Save a 2 On January 4, 2019, Columbus Company purchased new equipment for $633,000 that had a useful life of four years and a salvage value of $43,000 Prepare a schedule showing the annual depreciation and end-of year accumulated depreciation for the first three years of the asset's Ife under the straight line method, the sum-of-the-years-digits method, and the double-declining balance method the double-declining balance method ts used to compute depreciation, what would be the book value of the asset at the end of 2020? Complete this question by entering your answers in the tabs below Straight Uine Sum of Year Doube Digits Decining Anlyze 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 double-dedining-balance method. (Round your Depreciation rate to 2 decimal places i.. S0% should b entered as 0.s0.) DOUBLE DECLINING BALANCE ME T ? Anoual A Year Book Value 2019 2020 2021 S 633000 7

Explanation / Answer

Answer:

Value of the Equipment = $ 633,000

Useful life of the Asset = 4 years

Depreciation Rate as per Straight Line Method = 100/4 = 25%

Double Declining Depreciation Rate = 25* 2 = 50%   

Year

Beginning Book Value

Rate

Annual Depreciation

Accumulated Depreciation

2019

633000

50%

316500

316500

2020

316500

50%

158250

474750

2021

158250

50%

79125

553875

2022

79125

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Year

Beginning Book Value

Rate

Annual Depreciation

Accumulated Depreciation

2019

633000

50%

316500

316500

2020

316500

50%

158250

474750

2021

158250

50%

79125

553875

2022

79125