For each of the following depreciable assets, determine the missing amount. Abbreviations for depreciation methods are SL for straight-line and DDB for double-declining-balance. (Do not round intermediate calculations. Round your final answers to nearest whole dollar.) Asset A BCDE Cost 68,000 93,000 258,000 214,000 Residual Value $ 34,000 13,000 24,000 34,000 Service Life Depreciation Depreciation (Years) Method (Year 2) 5 8 10 8 DDB $ SL SL DDB 39,000 5,900 10,000 23,400

For each of the following depreciable assets, determine the missing amount. Abbreviations for depreciation methods are SL for straight-line and DDB for double-declining-balance. (Do not round intermediate calculations. Round your final answers to nearest whole dollar.) Asset A BCDE Cost 68,000 93,000 258,000 214,000 Residual Value $ 34,000 13,000 24,000 34,000 Service Life Depreciation Depreciation (Years) Method (Year 2) 5 8 10 8 DDB $ SL SL DDB 39,000 5,900 10,000 23,400

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Description: For each of the following depreciable assets, determine the missing amount. Abbreviations for depreciation methods are SL forstraight-line and DDB for double-declining-balance. (Do not round intermediate calculations. Round your final answers to nea

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.

Topic Video

Question

For each of the following depreciable assets, determine the missing amount. Abbreviations for depreciation methods are SL for
straight-line and DDB for double-declining-balance. (Do not round intermediate calculations. Round your final answers to nearest
whole dollar.)
Asset
A
B
C
D
E
Cost
68,000
93,000
258,000
214,000
Residual
Value
$ 34,000
13,000
24,000
34,000
Service Life Depreciation
(Years)
Method
5
8
10
8
DDB
SL
SL
DDB
Depreciation
(Year 2)
$
39,000
5,900
10,000
23,400

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