Solution A piece of equipment costing $40,000 has a useful life of 5 yearsand no salvage value. Using the double-declining balancemethod, what is the depreciation expense for the first year?

Double-declining rate = 100%/5years x 2Double-declining rate = 40% There is no salvage value but it…

Answered: A piece of equipment costing $40,000…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A piece of equipment costing $40,000 has a useful life of 5 years and no salvage value. Using the double-declining balance method, what is the depreciation expense for the first year?
A new barcode reading device has an installed cost basis of $24,750 and an estimated service life of seven years. It will have a zero salvage value at that time. The 200% declining balance method is used to depreciate this asset. Solve, a. What will the depreciation charge be in year seven? b. What is the book value at the end of year six? c. What is the gain (or loss) on the disposal of the device if it is sold for $800 after six years?
A new barcode reading device has an installed cost basis of $20,670and an estimated service life of seven years. It will have a zero salvage value at that time. The 200% declining balance method is used to depreciate this asset. a. What will the depreciation charge be in year seven? b. What is the book value at the end of year six? c. What is the gain (or loss) on the disposal of the device if it is sold for $1,000 after six years? a. The depreciation charge in year seven will be ... nothing. b. The book value at the end of year six is ... nothing. c. The ... loss gain on the disposal of the device if it is sold for $1,000 after six years is .. nothing.
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
A new barcode reading device has an installed cost basis of $22,820 and an estimated service life of nine years. It will have a zero salvage value at that time. The 150% declining balance method is used to depreciate this asset. a. What will the depreciation charge be in year nine? b. What is the book value at the end of year eight? c. What is the gain (or loss) on the disposal of the device if it is sold for $3,200 after eight years? a. The depreciation charge in year nine will be $. (Round to the nearest dollar.)
Given a cost of a depreciable fixed asset of $24,000 with a salvage value of $2,000 and a life of 5 years, what is the annual depreciation of the fixed asset using the straight-line method? What would be the depreciation in the second year if it used the declining balance method at double the straight-line rate? In regards to question #1, if the company used the straight-line method and sold the asset after 4 years for $7,000, what would be the journal entry needed to record the transaction? What if they sold it for $5,000?
4.It is know that the book value of an asset depreciated through declining balance depreciation is $3000 in year 3.Purchase price of the asset was $3800.What is the asset salvage value at the end of its useful life,which is 10 years?
A machine with a cost of $75,000 has an estimated residual value of $5000 and an estimated life before his years or 18,000 hours. What is the amount of depreciation for the second full year, using the double declining balance method?
A lathe machine has an estimated salvage value of P10,000 at the end of its useful life of 8 yrs. Compute the first cost of the machine if the total depreciation at the end of 4th year using double declining balance method is P957,031.25.
Equipment with a cost of $450,000 has an estimated salvage value of $30,000 and an estimated lifeof 4 years or 10,000 hours. It is to be depreciated by the declining balance method (double). What is theamount of depreciation for the first full year, during which the equipment was used 2,700 hours?
You have a tax basis of $80,000 and a useful life of five years and no salvage value. Provide a depreciation schedule (dk for k = 1 to 5) for 200% declining balance with switchover to straight line. Specify the year to switchover.
An earth moving equipment has a first cost of P 25,000, estimated life of 6 years, with no salvage value. What is the total depreciation after 4 years using Sinking Fund Method at 4%?

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

A piece of equipment costing $40,000 has a useful life of 5 years and no salvage value. Using the double-declining balance method, what is the depreciation expense for the first year?