Welcome to Westonci.ca, where finding answers to your questions is made simple by our community of experts. Get immediate answers to your questions from a wide network of experienced professionals on our Q&A platform. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently.
Sagot :
Answer:
A.
Depreciation expense each of the three years would be $60,000
Book value at the end of year 1 = $140,000
Book value at the end of year 2 =$80,000
Book value at the end of year 3 = $20,000
B.
Depreciation expense in year 1 =$90,000
Depreciation expense in year 2 =$60,000
Depreciation expense in year 3 =$30,000
Book value at the end of year 1 =$110,000
Book value at the end of year 2 = $50,000
Book value at the end of year 3 = $20,000
C.
Depreciation expense in year 1 = $133,333.33
Book value at the end of year 1 = $66,666.67
Depreciation expense in year 2 = $44,444.45
Book value at the end of year 2 = $22,222.22
Depreciation expense in year 3 = $14,814.16
Book value at the end of year 3 = $7,407.40
Explanation:
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
($200,000 - $20,000) / 3 = $60,000
Depreciation expense each of the three years would be $60,000
Book value at the end of year 1 = $200,000 - $60,000 = $140,000
Book value at the end of year 2 = $140,000 - $60,000 = $80,000
Book value at the end of year 3 = $80,000 - $60,000 = $20,000
Sum-of-the-year digits = (remaining useful life / sum of the years ) x (Cost of asset - Salvage value)
Sum of the years = 1 + 2 + 3 = 6 years
Depreciation expense in year 1 = (3/6) x ($200,000 - $20,000) = $90,000
Depreciation expense in year 2 = (2/6) x ($200,000 - $20,000) = $60,000
Depreciation expense in year 3 = (1/6) x ($200,000 - $20,000) = $30,000
Book value at the end of year 1 = $200,000 - $90,000 = $110,000
Book value at the end of year 2 = $110,000 - $60,000 = $50,000
Book value at the end of year 3 = $50,000 - $30,000 = $20,000
Depreciation expense using the double declining method = Depreciation factor x cost of the asset
Depreciation factor = 2 x (1/useful life) = 2/3
Depreciation expense in year 1 = (2/3) x $200,000 = $133,333.33
Book value at the end of year 1 = $200,000 - $133,333.33 = $66,666.67
Depreciation expense in year 2 = (2/3) x $66,666.67 = $44,444.45
Book value at the end of year 2 = $66,666.67 - $44,444.45= $22,222.22
Depreciation expense in year 3 = (2/3) x$22,222.22 = $14,814.16
Book value at the end of year 3 =$22,222.22 - $14,814.16 = $7,407.40
We hope this information was helpful. Feel free to return anytime for more answers to your questions and concerns. We appreciate your time. Please revisit us for more reliable answers to any questions you may have. We're here to help at Westonci.ca. Keep visiting for the best answers to your questions.
