Building was acquired by Tim at the starting of the year with the amount of P1,375,000 and it has an residual value of 250,000. Useful life=40 years Find: 1. Double declining balance rate 2.Double declining balance depreciation for the 1" year

Building was acquired by Tim at the starting of the year with the amount of P1,375,000 and it has an residual value of 250,000. Useful life=40 years Find: 1. Double declining balance rate 2.Double declining balance depreciation for the 1" year

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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Question

Building was acquired by Tim at the starting of the year with the amount of P1,375,000 and it has an
residual value of 250,000.
Useful life=40 years
Find:
1.Double declining balance rate
2.Double declining balance depreciation for the 1st year

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

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