Depreciation Methods On January 2, 2015, Alvarez Company purchased an electropla
ID: 2552193 • Letter: D
Question
Depreciation Methods
On January 2, 2015, Alvarez Company purchased an electroplating machine to help manufacture a part for one of its key products. The machine cost $218,700 and was estimated to have a useful life of six years or 781,200 platings, after which it could be sold for $23,400.
b. Assume that the machine was purchased on September 1, 2015. Calculate each year's depreciation expense for the period 2015-2021 under each of the following depreciation methods:
2. Double-declining balance. I need extra help with this one. We can't seem to get the right answers. 24,298, 64,794, 43,196, 28,298, 17997, 11,997, 587 are WRONG.
Year Depreciation
2015 ?????
2016 ?????
2017 ????
2018 ????
2019 ?????
2020 ?????
2021 ?????
There are similiar questions to this one online already but the answers they have given are wrong. When I plug the answers in my course says they are wrong so I need a new perspective.
Explanation / Answer
DOUBLE DECLINING BALANCE METHOD
Year
Book Value Begining
Double Declining Depreciation = 2 x SL Depreciation Rate x Book Value Begining
Net Book Value End
2015
218700
24300
194400
2016
194400
64800
129600
2017
129600
43200
86400
2018
86400
28000
57600
2019
57600
19200
38400
2020
38400
12800
25600
2021
25600
2200
23400
***Stright Line Depreciation Rate = 1/6 = 16.67%
Depreciation for 2015 is for 4 months only (218700 x 2 16.67% x 4/12)
Depreciation for 2015 = 24300
Depreciation for 2016 =64800
Depreciation for 2017 =43200
Depreciation for 2018 =28000
Depreciation for 2019 =19200
Depreciation for 2020 =12800
Depreciation for 2021 =2200
Year
Book Value Begining
Double Declining Depreciation = 2 x SL Depreciation Rate x Book Value Begining
Net Book Value End
2015
218700
24300
194400
2016
194400
64800
129600
2017
129600
43200
86400
2018
86400
28000
57600
2019
57600
19200
38400
2020
38400
12800
25600
2021
25600
2200
23400
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.