U-Haul acquired new trucks for $1.4 million. Their estimated useful life is 4 years, and estimated residual
Question:
U-Haul acquired new trucks for $1.4 million. Their estimated useful life is 4 years, and estimated residual value is $200,000. Prepare a depreciation schedule similar to Exhibit, comparing straight-line and DDBdepreciation.
Transcribed Image Text:
Declining-Balance at Twice the Straight-Line Rate (DDB)T Modified DDB-Depreciation Schedule Adjustment in Year 4 Straight-Line* Book Value $41,000 20,500 10,250 Annual Depreciation Book Value Depreciation Annual Book Value $41,000 20,500 10,250 5,125 2,562 Annual Depreciation $41,000 At acquisition Year 1 Year 2 Year 3 Year 4 Total $10,000 10,000 10,000 10,000 $40,000 31,000 $20,500 21,000 10,250 5,125 2,563 $38,438 $20,500 10,250 5,125 4,125 $40,000 11,000 1,000 5,125 1,000
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Depreciation is the same each year 25 of 1400000 200000 Straightline rate is 100 4 25 The DDB rate i...View the full answer
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Related Book For
Introduction to Financial Accounting
ISBN: 978-0133251036
11th edition
Authors: Charles Horngren, Gary Sundem, John Elliott, Donna Philbrick
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