Problem 9-9A (Part Level Submission) ue Carporatian purchased michinery on anuar

Question

Problem 9-9A (Part Level Submission) ue Carporatian purchased michinery on anuary 2017 ?a cost d $300 000 T ? estimated useh lite of the machinery 's 4 ars, wkh- est ated sal ai ? t the end of that period of 530 0 The company ns ing amer( nt de Neciatior, mathods that uld be used for financial eport Prapare separata depracation schodules for the machinery uzing the ctraight-Inc mathod, and the dedining balnce mcthod usng double the straight lInc ratc. Computation End of Year Years Depreciahle Cost Depretiation 2017 2018 Annual nepreciation Fxpense cumulated nepreciation Bok Value 2020 Years Book Value Beginning of Yearx Annual Depreciation Expensc Accumulated Depreciation Book Valuc 2017 2018 2010 2020 7,500 Deprezietion exgense fur 2020 uner Dvuble cledining-balenteis aljusted su that endng book velue is equal to savaye value

Explanation / Answer

Depreciation schedule - Straight line method :

Depreciation schedule - Double declining line method :

Computation End of year Year Depreciable cost * Depreciation rate = Annual depreciation expense Accumlated depreciation Book value 2017 (300000-30000) = 270000 * 25% = 67500 67500 232500 2018 270000 * 25% = 67500 135000 165000 2019 270000 * 25% = 67500 202500 97500 2020 270000 * 25% = 67500 270000 30000

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