A company purchases equipment costing $50 000, which it expects to last for 12 years and...

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A company purchases equipment costing $50 000, which it expects to last for 12 years and to have a salvage value of $2000. (2 marks) A. Prepare a schedule of depreciation for the first five years using the straight-line method. Year 1 2 3 4 5 1 2 3 B. For the same equipment, prepare a schedule of depreciation for the first five years using the declining-balance method. Canada Revenue Agency's prescribed rate for depreciation is 30%. (2.5 marks) Year 4 5 Straight-line Depreciation Depreciation Year 1 2 3 4 5 Balance $50 000 Declining Balance Depreciation C. Repeat the same type of calculations as in B above, but this time assume CRA's 50% rule is in effect. (2.5 marks) Balance $50 000.00 Declining Balance with 50% Rule Depreciation Balance $50 000.00 A company purchases equipment costing $50 000, which it expects to last for 12 years and to have a salvage value of $2000. (2 marks) A. Prepare a schedule of depreciation for the first five years using the straight-line method. Year 1 2 3 4 5 1 2 3 B. For the same equipment, prepare a schedule of depreciation for the first five years using the declining-balance method. Canada Revenue Agency's prescribed rate for depreciation is 30%. (2.5 marks) Year 4 5 Straight-line Depreciation Depreciation Year 1 2 3 4 5 Balance $50 000 Declining Balance Depreciation C. Repeat the same type of calculations as in B above, but this time assume CRA's 50% rule is in effect. (2.5 marks) Balance $50 000.00 Declining Balance with 50% Rule Depreciation Balance $50 000.00

Answer rating: 100% (QA)

A Schedule of Depreciation using the StraightLine Method Straightline depreciation is calculated by dividing the difference between the cost of the eq... View the full answer