New machine was purchased for $28,000 and it has a salvage value of $4,000. The

Question

New machine was purchased for $28,000 and it has a salvage value of $4,000. The machine has a useful life of six (6) years. Calculate the depreciation schedule for straight line and double declining balance using the file attached.

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New machine was purchased for $28,000 and it has a salvage value of $4,000. The machine has a useful life of six (6) years. Calculate the depreciation schedule for straight line and double declining balance using the file attached.

Straight Line Depreciation Schedule Year. Beginning Book Value. Depreciation Expense. Accumulated Depreciation. Ending Book Value 1 2 3 4 5 6 7 8 9

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Declining Balance Depreciation Schedule Year Beginning Book Value Depreciation Rate Depreciation Expense Accumulated Depreciation Ending Book Value 1 2 3 4 5 6 7 8 9 10

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Amount Cost of machine            28,000.00 Salvage Value              4,000.00 Useful life in years                       6.00 Depreciation expense per year = (28000 - 4000)/6              4,000.00 Year Beginning Book value Depreciation Expense Accumulated Depreciation Ending Book Value                                                                               1.00            28,000.00              4,000.00              4,000.00            24,000.00                                                                               2.00            24,000.00              4,000.00              8,000.00            20,000.00                                                                               3.00            20,000.00              4,000.00            12,000.00            16,000.00                                                                               4.00            16,000.00              4,000.00            16,000.00            12,000.00                                                                               5.00            12,000.00              4,000.00            20,000.00              8,000.00                                                                               6.00              8,000.00              4,000.00            24,000.00              4,000.00 Cost of machine            28,000.00 Salvage Value              4,000.00 Useful life in years                       6.00 Depreciation rate =1/6*2 33.33% Year Beginning BV Depreciation rate Depreciation Exp Accumulated Dep Ending BV                                                                               1.00            28,000.00 33.33%              9,332.40              9,332.40            18,667.60                                                                               2.00            18,667.60 33.33%              6,221.91            15,554.31            12,445.69                                                                               3.00            12,445.69 33.33%              4,148.15            19,702.46              8,297.54                                                                               4.00              8,297.54 33.33%              2,765.57            22,468.03              5,531.97                                                                               5.00              5,531.97 33.33%              1,531.97            24,000.00              4,000.00                                                                               6.00              4,000.00 33.33%                           -              24,000.00              4,000.00

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