Boscan Corporation purchased machinery on January 1, 2014, at a cost of $277,000
ID: 2480925 • Letter: B
Question
Boscan Corporation purchased machinery on January 1, 2014, at a cost of $277,000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of $26,100. The company is considering different depreciation methods that could be used for financial reporting purposes.
STRAIGHT-LINE DEPRECIATION
Computation
End of Year
Years
Depreciable Cost
Depreciation Rate
Annual Depreciation Expense
Accumulated Depreciation
Book Value
DOUBLE-DECLINING-BALANCE DEPRECIATION
Computation
End of Year
Years
Book Value Beginning of Year
Depreciation Rate
Annual Depreciation Expense
Accumulated Depreciation
Book Value
8,525
Boscan Corporation purchased machinery on January 1, 2014, at a cost of $277,000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of $26,100. The company is considering different depreciation methods that could be used for financial reporting purposes.
Explanation / Answer
STRAIGHT LINE DEPRECIATION
DOUBLE-DECLINING-BALANCE DEPRECIATION
Computation End of Year Year Depreciable Cost Depreciation Rate Annual Depreciation Accumulated Depreciation Book Value 2014 $250,900 25% $62,725 $62,725 $214,275 2015 $250,900 25% $62,725 $125,450 $151,550 2016 $250,900 25% $62,725 $188,175 $88,825 2017 $250,900 25% $62,725 $250,900 $26,100Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.