Question 28 Not yet answered Calculate depreciation for the first year using the
ID: 2576506 • Letter: Q
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Question 28 Not yet answered Calculate depreciation for the first year using the double-declining-balance method of depreciation. (Do not round any Marked out of 1 The cost of an asset is $1,000,000, and its residual value is $290,00D. Estimated usefut life of the asset is five years intermediate calculations, and round your final answer to the nearest dollar.) r Remove tesSelect one A $284,000 B $400,000 C. $200,000 D. $142,000 E None of the above O The cost of an asset is $1,110,000, and its residual value is $300.000. Estimated useful life of the asset is five years Question 29 Not yet aneweres Cakculate depreciation for the second year using the double-declining-balance method of depreciation. (Do not round Marked out of P Fleo question any intermediate calculations, and round your final answer to the nearest dolar) Select one A $222.000 B $162000 C $324,000 D $266,400 E None of the above on June 30. 2016. Colora Printers purchased a printer for $59.000, it expects the printer to last for tour years and have Not ye wwereda residual value of $10,000 Compute the depreciation expense on the printer for the year ended December 31, 2016, using the straight-ine method (Round any intermediate cakculations to two decimal places, and your tinal answer to the Question 30 Marked out of f Fing queston Select one A $12 250 B $6,125 C $14,750 D $7.146 E None of the aboveExplanation / Answer
Answer to Part 1
(a)
(b)
(c)
(d) = (b)*(c)
(e)
(f) = (b) - (d)
Year
Book Value at the Beginning of the year
Depreciation Percentage
Depreciation Expense
Accumulated Depreciation
Book Value at the end of the Year
1
1000000
40%
400000
400000
600000
Therefore, the right answer is Option (B)
Rate of Depreciation under Straight line Method:
(1000000 - 290000)/5
142000
142000/(1000000-290000)
20%
Rate of Depreciation under Double declining Method:
20%*2
40%
Answer to Part 2
(a)
(b)
(c)
(d) = (b)*(c)
(e)
(f) = (b) - (d)
Year
Book Value at the Beginning of the year
Depreciation Percentage
Depreciation Expense
Accumulated Depreciation
Book Value at the end of the Year
1
1110000
40%
444000
444000
666000
2
666000
40%
266400
710400
399600
Therefore, the right answer is option (D)
Rate of Depreciation under Straight line Method:
(1110000 - 300000)/5
162000
162000/(1110000-300000)
20%
Rate of Depreciation under Double declining Method:
20%*2
40%
Answer to Part 3
Cost of the printer
59000
Residual Value
10000
Depreciable Value
49000
Life of the Printer in Years
4
Depreciaiton Under Straight Line method (49000/4)
12250
Deprecaition per Half Year (12250/4)
6125
Therefore the right answer is Option (B)
Answer to Part 1
(a)
(b)
(c)
(d) = (b)*(c)
(e)
(f) = (b) - (d)
Year
Book Value at the Beginning of the year
Depreciation Percentage
Depreciation Expense
Accumulated Depreciation
Book Value at the end of the Year
1
1000000
40%
400000
400000
600000
Therefore, the right answer is Option (B)
Rate of Depreciation under Straight line Method:
(1000000 - 290000)/5
142000
142000/(1000000-290000)
20%
Rate of Depreciation under Double declining Method:
20%*2
40%
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