Please provide a step by step breakdown on how to compute double declining balan

Question

Please provide a step by step breakdown on how to compute double declining balance depreciation

Shining Cookie Company, Inc., in Murfreesboro, TN bought a new ice cream maker at the beginning of the year at a cost of $32,000. The estimated useful life was four years, and the residual value was $3,400. Assume that the estimated productive life of the machine was 11,000 hours. Actual annual usage was 4,400 hours in year 1; 3,300 hours in year 2; 2,200 hours in year 3; and 1,100 hours in year 4.

Complete a depreciation schedule for double-declining-balance.

C. Double-declining-balance. Depreciation Accumulated Net Year Expense Depreciation Book Value At acquisition 4

Explanation / Answer

Total Depreciable Amount (32000-3400)= 28600

Annual Depreciation Rate 100%/4=25%

Multiply the beginning period book value by the twice the regular annual rate 32000*50%=16000

YEAR Depreation Accumlate dep NET BOOK VALUE At Acq 0 0 32000 1 16000 16000 16000 2 8000 24000 8000 3 4000 28000 4000 4 2000 3000 2000

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.