Question: using a double-declining balance method, calculate the Annual depreciation expense that will be recorded each year for an asset that cost 18,100, has a useful
using a double-declining balance method, calculate the Annual depreciation expense that will be recorded each year for an asset that cost 18,100, has a useful life of four years and has a estimated salvage value of $3,600. Explain what accounting issues arises, if any, in the third and fourth years.
A. Determine the deprecation cost?
B. Complete the depreciation schedule using the double declining method.
Year Rate book value Annual deprecation Accumulated deprecation
1
2
3
4
C. Explain what accounting issues arises, if any, in the third and fourth years.
Total deprecation charged over the life of the asset? can exceed deprecation cost, can exceed original cost or cannot exceed deprecation cost. In this case , the third year deprecation? is all meaning deprecation allowed, or is some of the remaining deprecation, and? no depreciation is charged , The remaining deprecation is charged or the same amount of deprecation is charged. in the four years
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