Equipment cost $24,000 Useful Life 5 years Residual value $2000 Calculate double declining rate to depreciate equipment
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Question:
Equipment cost $24,000
Useful Life 5 years
Residual value $2000
Calculate double declining rate to depreciate equipment
• Use the chart to document and calculate depreciation for equipment
formula | Dollar Values | Reply | |
1 DDB | 1 Depreciation | 1 between | 1 period. | 2 Sonu | 2 Period |
Year | Initial Book Value | depreciation rate | Depreciation Expense | Accumulated Depreciation | End Book Value |
1 | |||||
2 | |||||
3 | |||||
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5 |
Partial Annual Depreciation
• When a factory asset is acquired during the year, depreciation is calculated for the portion of the year owned by the asset.
Example: Let's say our machines were purchased on October 8, 2014. Calculate the depreciation expense for December 31, 2014 using the straight-line method.
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