Explore Westonci.ca, the top Q&A platform where your questions are answered by professionals and enthusiasts alike. Our platform provides a seamless experience for finding reliable answers from a network of experienced professionals. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.
Sagot :
Answer:
A. Depreciation expense in 20Y5 = $900
Depreciation expense in 20Y6 = $3,600
B. Depreciation expense in 20Y5 = $2800
Depreciation expense in 20Y6 =$7840
Explanation:
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
($42,000 - $6,000) / 10 = $3,600
The depreciation expense would be $3600 each year except in 20Y5. when the equipment was used from October to December which is 3 months
Depreciation expense in 20Y5 = 3/12 x $3600 = $900
Depreciation expense using the double declining method = Depreciation factor x cost of the asset
Depreciation factor = 2 x (1/useful life) = 2/10 = 0.2
Depreciation expense in 20Y5 = 0.2 x $42,000 = $8,400
But the equipment was only used for 3 months, so we would divide the figure above by 3
$8400 / 3 = $2800
Depreciation expense in 20Y5 = $2800
Depreciation expense in 20Y6 = book value in the beginning of 20Y6 x depreciation expense
Book value = cost of the asset - depreciation expense in 20Y5
$42,000 - $2800 = $39,200
Depreciation expense in 20Y6 = $39,200 x 0.2 = $7840
We appreciate your time on our site. Don't hesitate to return whenever you have more questions or need further clarification. We appreciate your time. Please come back anytime for the latest information and answers to your questions. Your questions are important to us at Westonci.ca. Visit again for expert answers and reliable information.
