Swifty Industries presents you with the following information. Complete the tabl
ID: 340532 • Letter: S
Question
Swifty Industries presents you with the following information.
Complete the table for the year ended December 31, 2019. The company depreciates all assets using the half-year convention. (Round answers to 0 decimal places, e.g. 45,892.)
Description
Date
Purchased
Cost
Salvage
Value
Life
in Years
Depreciation
Method
Accumulated
Depreciation to
12/31/18
Depreciation
for 2019
Description
Date
Purchased
Cost
Salvage
Value
Life
in Years
Depreciation
Method
Accumulated
Depreciation to
12/31/18
Depreciation
for 2019
DDBSLSYD
$32,016 (b) $ Machine B 8/15/16 (c) 20,160 5 SL 27,840 (d) Machine C 7/21/15 72,384 23,500 8 DDB (e) (f) Machine D (g)10/12/1610/12/1710/12/18
210,240 66,240 5 SYD 67,200 (h)Explanation / Answer
Description Date Purchased Cost Salvage Value Life in Years Depreciation Method Accumulated Depreciation to 12/31/18 Depreciation for 2019 Machine A 2/12/2017 136,800.00 15,360.00 10 SYD 32,016 18,768 Machine B 8/15/2016 75,840.00 20,160.00 5 SL 27,840 11,136 Machine C 7/21/2015 72,384.00 23,500.00 8 DDB 45,664 6,680 Machine D 10/12/16 210,240.00 66,240.00 5 SYD 67,200 33,600 Machine A - SYD Method Dep. For 2019 = 9/55 X ($136,800 - $15,360) X 1/2 + 8/55 X ($136,800 -$15,360) X 1/2 Dep. For 2019 = $18,768 Machine B - Straight Line Accumulated Depreciation - 12/31/18 = $27,840 Depreciation per Annum = $27,840 / 2.50 Years = $11,136 Cost of Machine = ($11,136 X 5 Years) + $20,160 = $75,840 Machine C - DDB Rate of Dep. Under DDB = 2 X 12.50 (Rate of dep. Under Straight Line) Rate of Dep. Under DDB = 25% Year Beg. Bal. Dep. Accum. Dep. End. Bal. 2015 72,384 9,048 9,048 63,336 2016 63,336 15,834 24,882 47,502 2017 47,502 11,876 36,758 35,627 2018 35,627 8,907 45,664 26,720 2019 26,720 6,680 52,344 20,040 Machine D - SYD Method Dep. For 2019 = 4/15 X ($210,240 - $66,240) X 1/2 + 3/15 X ($210,240 -$66,240) X 1/2 Dep. For 2019 = $33,600
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