1. Wang Company uses the double declining balance (DDB) method of depreciation on its fixed assets. On January 1, 2009, Wang purchased a machine: Cost = $125,500 Salvage value = $13,375 Useful life = 5 years Important: Round all answers to the nearest dollar (e.g. $2,535). What is the balance of Accumulated Depreciation - Machine on December 31, 2010? $ 2. Wang Company uses the double declining balance (DDB) method of depreciation on its fixed assets. On January 1, 2009, Wang purchased a machine: Cost = $125,500 Salvage value = $13,375 Useful life = 5 years Important: Round all answers to the nearest dollar (e.g. $2,535). What is the book value of the machine on December 31, 2011? 3. Wang Company uses the double declining balance (DDB) method of depreciation on its fixed assets. On January 1, 2009, Wang purchased a machine: Cost = $125,500 Salvage value = $13,375 Useful life = 5 years Important: Round all answers to the nearest dollar (e.g. $2,535). What is Depreciation Expense on the machine for the year ended 2013? $
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
1.
Wang Company uses the double declining balance (DDB) method of
Cost = $125,500
Salvage value = $13,375
Useful life = 5 years
Important: Round all answers to the nearest dollar (e.g. $2,535).
What is the balance of
2.
Wang Company uses the double declining balance (DDB) method of depreciation on its fixed assets. On January 1, 2009, Wang purchased a machine:
Cost = $125,500
Salvage value = $13,375
Useful life = 5 years
Important: Round all answers to the nearest dollar (e.g. $2,535).
What is the book value of the machine on December 31, 2011?
3.
Wang Company uses the double declining balance (DDB) method of depreciation on its fixed assets. On January 1, 2009, Wang purchased a machine:
Cost = $125,500
Salvage value = $13,375
Useful life = 5 years
Important: Round all answers to the nearest dollar (e.g. $2,535).
What is Depreciation Expense on the machine for the year ended 2013? $
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