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

Question

Brief Exercise 11-4 Bramble Company purchased machinery on January 1, 2017, for $90,400. The machinery is estimated to have a salvage value of $9,040 after a useful life of 8 years. Compute 2017 depreciation expense using the double-declining-balance method Depreciation expense s Compute 2017 depreciation expense using the double-declining-balance method, assuming the machinery was purchased on October 1, 2017. (Round answer to o decimal places, e.g. 5,125.) Depreciation expense s Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

Purchase date of machinery = January 1, 2017

Cost = 90,400

Useful life = 8 years

Depreciation under double declining balance method = (cost - accumulated depreciation) / useful life * 2

Accumulated depreciation in the year 2017 = 0

Depreciation expense for the year 2017 = (90,400 - 0) / 8 * 2 = 22,600

Depreciation expense = 22,600.

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Depreciation expense if the machinery was purchsed on October 1, 2017 = 22,600 * 3 / 12 = 5,650

Depreciation expense = 5,650.

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