Required information The following information applies to the questions displaye

Question

Required information The following information applies to the questions displayed below On April 1, 2016, Cyclone's Backhoe Co. purchases a trencher for $290,000. The machine is expected to last five years and have a salvage value of $45.000. Compute depreciation expense for both years ending December 2016 and 2017 assuming the company uses the double-declining-balance method. (Enter all amounts positive values.) Depreciation for the Period End of Period Beginning of Annual Period Period Book Depreciation Partial Depreciation Accumulated Rate Year Expense Depreciation Book Value Value 2016 2017

Explanation / Answer

Calculate following :

290000

174000

40%

40%

3/12

9/12

29000

52200

Straight line dep = 100/5 = 20%

Double decline rate = 20*2 = 40%

Depreciation for the period End of period Annual period Beginning of period book value Depreciation rate Partial year Depreciation expense Accumlated depreciation Book value 2016 290000 40% 9/12 87000 87000 203000 2017

290000

174000

40%

40%

3/12

9/12

29000

52200

81200 121800

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.