Year Straight-Line Sum-of-the- Years\'-Digits Double-Declining- Balance Rembrand

Question

Year

Straight-Line

Sum-of-the-
Years'-Digits

Double-Declining-
Balance

Rembrandt Company acquired a plant asset at the beginning of Year 1. The asset has an estimated service life of 5 years. An employee has prepared depreciation schedules for this asset using three different methods to compare the results of using one method with the results of using other methods. You are to assume that the following schedules have been correctly prepared for this asset using (1) the straight-line method, (2) the sum-of-the-years'-digits method, and (3) the double-declining-balance method.

Year

Straight-Line

Sum-of-the-
Years'-Digits

Double-Declining-
Balance

1 $17,640 $29,400 $39,200 2 17,640 23,520 23,520 3 17,640 17,640 14,112 4 17,640 11,760 8,467 5 17,640 5,880 2,901 Total $88,200 $88,200 $88,200
Answer the following questions. What is the cost of the asset being depreciated? (Round answer to 0 decimal places, e.g. 45,892.)
Cost of asset $

What amount, if any, was used in the depreciation calculations for the salvage value for this asset? (Round answer to 0 decimal places, e.g. 45,892.)
Salvage value $

Explanation / Answer

a. cost of asset being depriciated:88200

b. 0

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