Bramble Company purchased a new plant asset on April 1, 2017, at a cost of $718,
ID: 2576479 • Letter: B
Question
Bramble Company purchased a new plant asset on April 1, 2017, at a cost of $718,110. It was estimated to have a service life of 20 years and a salvage value of $60,600 Bramble's accounting period is the calendar year. Your answer is partially correct. Try again. Compute the depreciation for this asset for 2017 and 2018 using the sum-of-the-years'-digits method. (Round answers to O decimal places, e.g. 45,892.) Depreciation for 2017 46965 Depreciation for 2018 LINK TO TEXT Your answer is incorrect. Try again. Compute the depreciation for this asset for 2017 and 2018 using the double-declining-balance method. (Round answers to O decialplaces, e.g. 45,892.) Depreciation for 2017 Depreciation for 2018Explanation / Answer
Year Cost of the assets Salvage value Depreciable value sum of the year 2017 Depreciation 2018 Depreciation 2017 $ 718,110 $ 60,600 $ 657,510 1+2+3+4+5+6+7+8+9+10+11+12+13+14+15+16+17+18+19+20 = 210 $657,510*(20/210) * (9 /12) = $46,965 $657,510*(20/210) * (3 /12) = $15,655 2018 $ 718,110 $ 60,600 $ 657,510 1+2+3+4+5+6+7+8+9+10+11+12+13+14+15+16+17+18+19+20 = 210 $657,510*(19/210) * (9 /12) = $44,617 Ful Depreciation $ 46,965 $ 60,272 Depreciation under DDB Method Year - a Net Book value, beginning of year - b Double declained depreciation - c = b/Life of assets*2 Net book value, End of the year - d = b-c 2017 $ 718,110 $ 53,858 $ 664,252 2018 $ 664,252 $ 66,425 $ 597,827
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