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. Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar. Asset A BC В с DE E Cost Residual Value $ 38,000 76,000 101,000 266,000 218,000 5,000 28,000 38,000 Service Life (Years) 5 8 10 8 Depreciation Method DDB SL SL DDB Depreciation (Year 2) $ 45,000 6,300 12,000 23,800
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. Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar. Asset A BC В с DE E Cost Residual Value $ 38,000 76,000 101,000 266,000 218,000 5,000 28,000 38,000 Service Life (Years) 5 8 10 8 Depreciation Method DDB SL SL DDB Depreciation (Year 2) $ 45,000 6,300 12,000 23,800
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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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Transcribed Image Text: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.
Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar.
Asset
A
B
с
D
E
Cost Residual Value
$
38,000
76,000
101,000
266,000
218,000
5,000
28,000
38,000
Service Life
(Years)
5
8
10
8
Depreciation
Method
DDB
SL
SL
DDB
Depreciation
(Year 2)
$
45,000
6,300
12,000
23,800
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