Chapter 9 Homework Show Me HowCalculator Pertial-Year Depreciation Equipment acq

Question

Chapter 9 Homework Show Me HowCalculator Pertial-Year Depreciation Equipment acquirad at a cost of $92,000 has an estimatad residual value of $6,00 and an estimated useful lifa of 10 years. It was placed in sarvice on April 1 of the current fiscal year, which ends on December 31 If necessary, round your answers to the nearest cent. a. Datarmine the depreciation for the current fiscal year and for the folloning fiscal year by the straight-line mathod. EX09-08 EX.09-07.Algo EX.09-09.Ago EX09-11.Ago EX.09-12.Algo EX.09-17.Guided Algo PR.09-02.Guided Algo Year 1 Year 2 b. Datarmine the dapreciation for the current fiscal year and tha following fiscal year by the double-daclining-balanca mathod Year i Year 2 Check My Work Previous Next Progress: 4/7 items gnmert Score: 14.29% save and Exit submit Assignment for Grading AM 648 20/2018

Explanation / Answer

a) Straight line dep :

Depreciation per year = (92000-6000/10) = 8600 per year

First year dep = 8600*9/12 = 6450

Second year dep = 8600

b) Double decline balance dep :

Straight line rate = 100/10 = 10%

Double decline rate = 10%*2 = 20%

First year dep = 92000*20%*9/12 = 13800

Second year dep = (92000*20%*3/12+92000*80%*20%*9/12) = 15640

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