stuGent/mainfr.uni oblem 9-9A (Part Level Submission) ovak Corporation purchased

Question

stuGent/mainfr.uni oblem 9-9A (Part Level Submission) ovak Corporation purchased machinery on January 1, 2017, at a cost of $270,000. The estimated useful life of the machinery is 4 years, with an estimated salvage lue at the end of that period of $24,000. The company is considering different depreciation methods that could be used for financial reporting purposes repare separate depreciation schedules for the using the straight-line method, and the declining-balance method using double the straight-line rate. End of Year Depreciation Annual Depreciation Expense Accumulated Depreciation Book Value Years Depreciable Cost x 2017 2018 2019 2020 Ra 25% 61 2700 29% 270 2017

Explanation / Answer

Double declining depreciation schedule :

Computation End of year Years Book value beginning of year * Depreciation rate = Annual depreciation expense Accumlated depreciation Book value 2017 270000 * 50% = 135000 135000 135000 2018 135000 * 50% = 67500 202500 67500 2019 67500 * 50% = 33750 236250 33750 2020 33750 = 9750 246000 24000

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