im having trouble finding the rate and yearly depreciation for double declining
ID: 2406375 • Letter: I
Question
im having trouble finding the rate and yearly depreciation for double declining method plus the general ledger to go along with it
:Company purchased tool sharpening equipment on The equipment was Outober 1, 2014. tor sia espected to have a useful lite of three years, or 12 ours, and a residual value of $7,200 ne cquipme 2014. 4,200 hours 201 nt was used for 1 350 t hours in 2015, 3,650 hours in 2016. and 2.800 hours in 2017 Instructions unt of depreciation expense tor the years ended December s1, u 2015, 2016, and 2017, by () the straight-line method, and (o the double-declining balance method. method. 0h) the units-of-e -output metho $150.000o PR 10-4B New cal year, has an estimated useful life of four years and an estimated residual value Depreciation by two methods; sale of fixed asset 1, $55,000 n expense tire retreading equipment, acquired at a cost of S110,000 at the beginning of ? ( )( ) The manager requested information regarding the effect of alternative met f depreciation expense each year. On the basis of the data pr week of the fourth year, the equipment was sold for $18,000 presented u the manager, the double-declining-balance method was selected In the first Instructions I. Determine the annual depreciation expense for each of the estimated four y use, the accumulated depreciation at the end of each year, and the book value of u equipment at the end of each year by (a) the straight-line method and (b) the double declining-balance method. The following columnar headings are suggested for eadh schedule: years oi Accumulated Cases Depreciation Expense Depreciation, End of Year Book Value, End of Year 2. Journalize the entry to record the sale š. Journalize the entry to record the sale, assuming that the equipment sold for $10.5 instead of $18,000 OBJ. 1.2.1 PR 10-5B Transactions for fixed assets, including sale The following transactions, adjusting entries, and closing entries were completed b Robinson Furniture Co. during a three-year period. All are related to the use of deliven iation is usedExplanation / Answer
Answers
A
Cost
$ 110,000.00
B
Salvage Value
$ 7,500.00
C = A - B
Depreciable base
$ 102,500.00
D
Life
4
E = C/D
Annual SLM depreciation
$ 25,625.00
F = (E/C) x 100
SLM rate
25%
G = F x 2 times
Double declining rate
50%
Year
Depreciable balance
rate
Yearly Depreciation
1
$ 110,000.00
50%
$ 55,000.00
2
$ 55,000.00
50%
$ 27,500.00
3
$ 27,500.00
50%
$ 13,750.00
Year
Depreciable balance
Residual Value
Yearly Depreciation
4
$ 13,750.00
$ 7,500.00
$ 6,250.00
Working
Question 2
Question 3
A
Asset sold for
$ 18,000.00
$ 10,500.00
B
Cost
$ 110,000.00
$ 110,000.00
C
Accumulated depreciation balance till Year 3 end
$ 96,250.00
$ 96,250.00
D = B - C
Book Value
$ 13,750.00
$ 13,750.00
E = A - D
Gain (Loss) on sale
$ 4,250.00
$ (3,250.00)
Question no.
Accounts title
Debit
Credit
2
Cash
$ 18,000.00
Accumulated Depreciation - Equipment
$ 96,250.00
Gain on Sale
$ 4,250.00
Equipment
$ 110,000.00
(Equipment sold for $18000)
3
Cash
$ 18,000.00
Accumulated Depreciation - Equipment
$ 96,250.00
Loss on Sale
$ 3,250.00
Equipment
$ 110,000.00
(Equipment sold for $ 10500)
A
Cost
$ 110,000.00
B
Salvage Value
$ 7,500.00
C = A - B
Depreciable base
$ 102,500.00
D
Life
4
E = C/D
Annual SLM depreciation
$ 25,625.00
F = (E/C) x 100
SLM rate
25%
G = F x 2 times
Double declining rate
50%
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