Ane barcode reading device has an instated cost basis of $21,760 and an estimated service life of seven years it will have a zero salvage valun at that time. The 150% deckning balance method is used todepreciate this asseta. What will the depreciation charge be in yearseven?b. What is the book value at the end of years?e What is the gain (or loss) on the disposal of the device if it is sold for $900 after six years?a. The depreciation charge in year soven will be $(Round to the nearest dollar)CETTE

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Description: Ane barcode reading device has an instated cost basis of $21,760 and an estimated service life of seven years it will have a zero salvage valun at that time. The 150% deckning balance method is used todepreciate this asseta. What will the depreciati

Depreciation is a way to allocate the cost of an asset over the total useful life of an asset. Thus,…

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A new barcode reading device has an inslated cost basis of $21,760 and an estimated service ide of seven years it will have a zero salvage value at that time The 150% declining balance method is used to depreciate a. What will the depreciation charge be in year seven? b What is the book value at the end of year so? e What is the gain (or loss) on the disposal of the device it is sold for $900 after six years?

A new barcode reading device has an inslated cost basis of $21,760 and an estimated service ide of seven years it will have a zero salvage value at that time The 150% declining balance method is used to depreciate a. What will the depreciation charge be in year seven? b What is the book value at the end of year so? e What is the gain (or loss) on the disposal of the device it is sold for $900 after six years?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

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.

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Ane barcode reading device has an instated cost basis of $21,760 and an estimated service life of seven years it will have a zero salvage valun at that time. The 150% deckning balance method is used to
depreciate this asset
a. What will the depreciation charge be in yearseven?
b. What is the book value at the end of years?
e What is the gain (or loss) on the disposal of the device if it is sold for $900 after six years?
a. The depreciation charge in year soven will be $(Round to the nearest dollar)
CETTE

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Step 2: Requirements a, b &c- Determining depreciation in year 7, book value at 6th year end and gain/loss:

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