On July 1, 2017, Yorkton Company purchased for $432,000 equipment having an esti

Question

On July 1, 2017, Yorkton Company purchased for $432,000 equipment having an estimated useful life of five years with an estimated residual value of $20,000. Depreciation is calculated to the nearest month. The company has a December 31 year-end. (Please correct this question I can't figure out the mistakes)

Required:
Complete the following schedules: (Round intermediate calculations to the nearest whole dollar. Amount to be deducted should be indicated by a minus sign.)  

Answer is complete but not entirely correct. 2017 2018 2019 Double-declining-balance method Equipment Less: Accumulated depreciation Year-end book value Depreciation expense for the year s 432,000$ 432,000 432,000 307,584 $ 518,400 $ 656,640 $ 739,584 $ 86,400 138,240 $ 82,944 86,400 224,640 Straight-line method Equipment Less: Accumulated depreciation Year-end book value Depreciation expense for the year s 432,000$ 432,000 432,000 206,000 $ 473,200 $ 555,600 $ 638,000 41,200 123,600 41.200 $ 82.400 $ 82.400?

Explanation / Answer

You need to use -ve sign since accumulated depreciation needs to be deducted. 1 Double Declining Method 2017 2018 2019 Equipment 432000 432000 432000 less:Accumulated Depreciation -86400 -224640 -307634 Year end bookvalue 345600 207360 124366 Depreciation Expense for year 86400 138240 82994 =432000*40%/2 =345600*40% =207360*40% 2 Straight Line method Equipment 432000 432000 432000 less:Accumulated Depreciation -41200 -123600 -206000 Year end bookvalue 390800 308400 226000 Depreciation Expense for year 41200 82400 82400 =(432000-20000)*20%/2 =(432000-20000)*20% =(432000-20000)*20%

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