At Westonci.ca, we connect you with experts who provide detailed answers to your most pressing questions. Start exploring now! Our platform provides a seamless experience for finding precise answers from a network of experienced professionals. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently.
Sagot :
Answer: $11250
Explanation:
Based on the information given in the question, the depreciation expense for the equipment for 2018 under the double-declining-balance method will be calculated thus:
Cost of Equipment = $60,000
Salvage Value = $8,000
Useful Life = 8 years
Double-declining-balance Depreciation Rate will be calculated as:
= 2 / Useful Life
= 2 / 8
= 25%
For 2017:
Beginning Book Value = $60,000
Depreciation Expense = 25% × $60,000 = $15,000
Ending Book Value = $60,000 - $15,000 = $45,000
2018:
Beginning Book Value = $45,000
Depreciation Expense = 25% × $45,000 = $11,250
Therefore, the depreciation expense for the equipment for 2018 under the double-declining-balance method is $11250.
Note that:
Ending Book Value = Beginning Book Value - Depreciation Expense
We hope this information was helpful. Feel free to return anytime for more answers to your questions and concerns. Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Westonci.ca is your trusted source for answers. Visit us again to find more information on diverse topics.
