ew History Bookmarks People Window Help Connect https://newconnect.mheducation.c
ID: 2514743 • Letter: E
Question
ew History Bookmarks People Window Help Connect https://newconnect.mheducation.com/flow/connect.html Help rk 0 Required information Use the following information for the Exercises below. The following information applies to the questions displayed below) On April 1, 2016, Cyclone's Backhoe Co. purchases a trencher for $314,000. The machine is expected to last five years and have a salvage value of $57,000 Exercise 8-11 Straight-line, partial-year depreciation LO C2 Compute depreciation expense for both years ending December 2016 and 2017 assuming the company uses the straight-line method. Choose a Annual D Fraction of YearExplanation / Answer
Answer
Choose Numerator
/
Choose Denominator
=
Annual Depreciation
Cost - Salvage Value = Depreciable base
/
expected life
=
Annual Depreciation
$257000
/
5
=
$51,400
Year
Annual Depreciation
Fraction of year
Depreciation expense
2016
51400
9months/12months
$38,550 [51400 x 9/12]
2017
51400
12 months/12 months
$51,400 [51400 x 12/12]
Working
SLM Depreciation
$51400
Depreciable base
$257000
SLM Rate [51400/257000]
20%
DDB Rate [20% x 2]
40%
Annual Period
Beg. Book Value
Depreciation rate
Partial Year
Depreciation expense
Accumulated Depreciation
Book Value
2016
$314000
40%
9 months
$94200 [314000 x 40% x 9/12]
$94200
$219800
2017
$219800
40%
12 months
$87920 [219800 x 40% x 12/12]
$182120
$131880
Choose Numerator
/
Choose Denominator
=
Annual Depreciation
Cost - Salvage Value = Depreciable base
/
expected life
=
Annual Depreciation
$257000
/
5
=
$51,400
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.