An asset has a first cost of Rs. 48,000 with an estimated life of 20 years. What is the total accumulated depreciation charge during the first 5 years of the asset life if it is depreciated according to DDB Method?

An asset has a first cost of Rs. 48,000 with an estimated life of 20 years. What is the total accumulated depreciation charge during the first 5 years of the asset life if it is depreciated according to DDB Method?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Consider an asset with a cost basis of $10,000 that has been depreciated using 100% bonus…

A: The bonus deduction allows deducting 100% of the cost in the first year instead of different years…

Q: The MACRS depreciation allowances on 3-year property are 33.33%, 44.45%, 14.81%, and 7.41%,…

A: Depreciation A method of allocation of net cost with respect to those periods in which an entity is…

Q: An asset is purchased for $200,000. The salvage value in 20 years is $75,000. What is the…

A: Cost of non-current assets is amortized throughout its useful life and is recorded as depreciation…

Q: will be depreciated by the MACRS (GDS) straight-line method of depreciation. The effective income…

A: AE = First cost + PV of after-tax operating expense - PV of tax savings on depreciation…

Q: A depreciable property costing 1,400,000 with original residual value of 80,000 after 10 years, had…

A: Revaluation Surplus = Fair value - Carrying Amount Depreciation Expense = Cost - Residual…

Q: A building with a cost of $112,500 has an estimated residual value of $22,500, has an estimated…

A: Under straight line method of depreciation, depreciation remains same every year. Straight line…

Q: Refer to Exhibit 12.4 in the text. What is the depreciation expense deduction in each of 4 years for…

A: Depreciation is a charge calculated on the value of fixed assets, based on normal wear and tear due…

Q: Using the following formula, calculate the depreciation rate for an asset with an estimated useful…

A: Under Sum of Years Digits Method of Depreciation, Depreciation Rate for the year = Years remaining…

Q: What is the depreciation deduction each year, using each of the methods below, for an asset that…

A: Depreciation is the reduction in the value of assets due to normal wear and tear, passage of time,…

Q: You have a depreciable asset as follows: Equipment purchased for $100,000 Useful life is 10 years…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Cost of the asset, I Useful life, N Salvage value, S $130,000 5 years $5,000 Compute the annual…

A: Straight line depreciation is a method used to allocate the cost of a tangible asset equally over…

Q: An asset costs $19,000. At a depreciation rate of 20 percent, calculate its book value using…

A: Depreciation is considered as an expense that is charged on the value of the Asset. It can be…

Q: 1e. An asset is purchased for $90,000. It is expected to have a useful life of six years and a…

A: As per the MACRD - GDS depreciation table for 7 years, the depreciation rate applicable for 2nd year…

Q: An asset is purchased for $500,000. Salvage in 25 years is $100,000. What are the depreciation in…

A: Calculate the depreciation as per single line method as follows: Formulas:

Question

An asset has a first cost of Rs. 48,000 with an estimated life of 20 years. What is the total accumulated depreciation charge during the first 5 years of the asset life if it is depreciated
according to DDB Method?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Define double declining method

VIEW

Step 2: Calculation of accumulated Depreciation using DDB Method

VIEW

Solution

VIEW

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

N1. Account A piece of equipment is purchased for $40,000 and has an estimated salvage value of $1,000 at the end of the recovery period. Prepare a depreciation schedule for the piece of equipment using the straight-line method, the sum-of-the-years method, and the 200% declining-balance method with a recovery period of five years. Compare these depreciation methods in a graph.
Find the book value for the asset shown in the accompanying table, assuming that MACRS depresiing is being used: View the table attached: Asset Installed Cost Recovery Period (Years) Elapsed time since purchase (Years) A $902,000 5 3
I am using MACRS for depreciation. Purchase date: September 1st Cost: $650,000 Salvage: $30,000 Life: 7 years What percent do I use to calculate depreciation for years 1-8?
Please show all your work
Subject :- Accounting Assume an asset with an original cost of $40,000, $6,000 salvage value, is depreciated using straight-line depreciation over 5 years. After year 2, the salvage value was modified to a $2,000 salvage value, with 5 years of depreciation remaining. What is the new yearly depreciation?
Calculate the initial purchase price for an asset that has a book value of $34,800 and has total accumulated depreciation of $85,200.
An equipment costing P220,000 has an estimated life of 14 years with a book value of P30,000 at the end of the period. Compute the depreciation charge and its book value after 10 years using: a. straight-line method b. sinking fund method c. declining balance method d. sum of year's digit method
5. A company buys an asset with a cost of $96,000. They decide on a 6-year useful life and a $6,000 salvage value. What is the MONTHLY depreciation using straight line depreciation?
onsider the following data on an asset:Cost of the asset, I $235,000Useful life, N 5 yearsSalvage value, S $ 60,000Compute the annual depreciation allowances and theresulting book values, using(a) The straight-line depreciation method.(b) The double-declining-balance method
An income producing asset costs $6,630 and will be depreciated using 150% Declining Balance with a $896 salvage value over 13 years. What is the Book Value at the end of year 1?
For project A, what was the calculations for depreciation to get to the final answer of 720 000?
Calculate the depreciation expense for an asset with the following details: Initial Cost: $50,000 Salvage Value: $5,000 Useful Life: 5 years