is my information correct? 10. In early January 2013, NewTech purchases computer

Question

is my information correct?

10. In early January 2013, NewTech purchases computer equipment for $180,000 to use in operating activities for the next four years. It estimates the equipment's salvage value at $39,000. Prepare a table showing depreciation and book value for each of the four years assuming double-declining balance depreciation Depreciation for the Period End of Period Year Period Book Depreciation Accumulated Depreciation Depreciation AnnualA Rate Book Value Value 2013 S 2014 2015 2016 Total 180,000 90,000 45,000 22,500 50% 50% 50% 45,000 22,500 19,500 177,000 90,000 90,0S 90,000 135,000 112,500 132,000 45,000 22,500 19,500 2

Explanation / Answer

Depreciation rate in Straight line method = 4 year = 25%
Depreciation rate in double decline method = 25 x 2 = 50%

Depreciation for the period End of period Year Beginning of period
book value Depreciation
Rate Annual
Depreciation Accumulated
Depreciation Book Value 2013 $180,000 50% $90,000 $90,000 $90,000 2014 90,000 50% 45,000 135,000 45,000 2015 45,000 50% 22,500 157,500 22,500 2016 22,500 50% 11,250 168,750 11,250 Total $168,750

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.