engagenow.comm/takeAssignment/takeAssignmentMainda?invoker=&takeAssignmentSessionL.ocator=&inprogress=false eBook Calculator Compare Two Depreciation Methods ciation Bayside Coatings Company purchased waterproofing equipment on January 2, 20Y4, for $190,000. The equipment was expected to have a useful life of $9,000. Instructions: Determine the amount of depreciation expense for the years ended December 31, 20Y4, 20Y5, 20Y6, and 2OY7, by (a) the straight-line method and ( method. Also determine the total depreciation expense for the four years by each method. Depreciation Expense Year Straight-Line Method Double-Declining-Balance Method 20Y4 45,250 95,000 20YS 45,250 47,500 20Y6 45,250 23,750 V 20Y7 45,250 11,975 X Total 181,000 178,125 X Feedback Check My Work Asset cost minus residual value equals depreciable cost. Divide depreciable cost by estimated useful life. Straight line rate = 1 divided by the number of useful years. The straight line rate multiplied by 2 equals the double declining rate. Multiply the to get first year depreciation. Book value is the asset cost minus accumulated depreciation. In the first year, the balance in the accumulated dep Check My Work Email Instructor Save and th acer F4 F5 F6 F7 F8 F9 F10 F11 F12 PrtSc Pause Del z* Scr Lk SysRq Break Ins & ( 5 € 8 9- %3D т { 96
engagenow.comm/takeAssignment/takeAssignmentMainda?invoker=&takeAssignmentSessionL.ocator=&inprogress=false eBook Calculator Compare Two Depreciation Methods ciation Bayside Coatings Company purchased waterproofing equipment on January 2, 20Y4, for $190,000. The equipment was expected to have a useful life of $9,000. Instructions: Determine the amount of depreciation expense for the years ended December 31, 20Y4, 20Y5, 20Y6, and 2OY7, by (a) the straight-line method and ( method. Also determine the total depreciation expense for the four years by each method. Depreciation Expense Year Straight-Line Method Double-Declining-Balance Method 20Y4 45,250 95,000 20YS 45,250 47,500 20Y6 45,250 23,750 V 20Y7 45,250 11,975 X Total 181,000 178,125 X Feedback Check My Work Asset cost minus residual value equals depreciable cost. Divide depreciable cost by estimated useful life. Straight line rate = 1 divided by the number of useful years. The straight line rate multiplied by 2 equals the double declining rate. Multiply the to get first year depreciation. Book value is the asset cost minus accumulated depreciation. In the first year, the balance in the accumulated dep Check My Work Email Instructor Save and th acer F4 F5 F6 F7 F8 F9 F10 F11 F12 PrtSc Pause Del z* Scr Lk SysRq Break Ins & ( 5 € 8 9- %3D т { 96
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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I wanted to know the double declining balance method for 20Y7 and it's total
Transcribed Image Text:engagenow.comm/takeAssignment/takeAssignmentMainda?invoker=&takeAssignmentSessionL.ocator=&inprogress=false
eBook
Calculator
Compare Two Depreciation Methods
ciation
Bayside Coatings Company purchased waterproofing equipment on January 2, 20Y4, for $190,000. The equipment was expected to have a useful life
of $9,000.
Instructions:
Determine the amount of depreciation expense for the years ended December 31, 20Y4, 20Y5, 20Y6, and 2OY7, by (a) the straight-line method and (
method. Also determine the total depreciation expense for the four years by each method.
Depreciation Expense
Year
Straight-Line Method
Double-Declining-Balance Method
20Y4
45,250
95,000
20YS
45,250
47,500
20Y6
45,250
23,750 V
20Y7
45,250
11,975 X
Total
181,000
178,125 X
Feedback
Check My Work
Asset cost minus residual value equals depreciable cost. Divide depreciable cost by estimated useful life.
Straight line rate = 1 divided by the number of useful years. The straight line rate multiplied by 2 equals the double declining rate. Multiply the
to get first year depreciation. Book value is the asset cost minus accumulated depreciation. In the first year, the balance in the accumulated dep
Check My Work
Email Instructor
Save and
th
acer
F4
F5
F6
F7
F8
F9
F10
F11
F12
PrtSc
Pause
Del
z*
Scr Lk
SysRq
Break
Ins
&
(
5 €
8
9-
%3D
т
{
96
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