Ramirez Tool and Die purchases a welder on January 1 for $28,800. The welder has
ID: 2466168 • Letter: R
Question
Ramirez Tool and Die purchases a welder on January 1 for $28,800. The welder has an estimated useful life of seven years, during which time it is expected to produce 112,800 units. Salvage value is estimated at $1,490. The welder produces 15,510 and 16,100 units in its first and second years of operation, respectively. Calculate depreciation expense for the welder's first two years using the double-declining-balance method of depreciation. If required, round your answers to nearest whole value. (NOTE: When calculating depreciation, round intermediate calculations to four decimals and use your rounded answer for Year 1 to calculate Year 2.)
Depreciation Expense Year 1 $ Year 2 $Explanation / Answer
Life 7 Years Double decling balance method rate = 1/7%*2 28.57% Particulars Year 1 Year 2 Opening Balance 28,800.00 20,571.43 Depreciation@28.57% on opening Balance 8,228.57 5,877.55 Closing balance 20,571.43 14,693.88
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.