Brief Exercise 11-4 Skysong Company purchased machinery on January 1, 2017, for

Question

Brief Exercise 11-4 Skysong Company purchased machinery on January 1, 2017, for $96,800. The machinery is estimated to have a salvage value of $9,680 after a useful life of 8 years. Compute 2017 depreciation expense using the double-declining-balance method. Depreciation expense LINK TO TEXT Compute 2017 depreciation expense using the double-declining-balance method, assuming the machinery was purchased on October 1, 2017. (Round answer to 0 decimal places, e.g. 5,125.) Depreciation expense Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

11-2) Straight line dep rate = 100/8 = 12.5%

Double decline rate = 12.5*2 = 25%

Depreciation expense = 96800*25% = 24200

Depreciation expense if asset purchase on october 1,2017 = 24200*3/12 = 6050

11-3) Sum of year digit = 8+7+6+5+4+3+2+1 = 36

2017 dep = (95200-9520)*8/36 = 19040

Depreciation expense if assets purchase on april 1,2017 = 19040*9/12 = 14280

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