mpany purchased a 3-D printer for $411,000. Although this printer is expected to last for ten years, Kenzie knows the technology will become old quickly and so she plans to replace this printer in three years. Kenzie Company will be able to sell the printer for $30,000. Using the double-declining-balance method, what amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded? Round final answers to nearest whole dollar amount.
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.
Kenzie Company purchased a 3-D printer for $411,000. Although this printer is expected to last for ten years, Kenzie knows the technology will become old quickly and so she plans to replace this printer in three years. Kenzie Company will be able to sell the printer for $30,000.
Using the double-declining-balance method, what amount will be recorded as
| Depreciation Expense |
Book Value |
|
| Year 1 | $fill in the blank 1 | $fill in the blank 2 |
| Year 2 | $fill in the blank 3 | $fill in the blank 4 |
| Year 3 | $fill in the blank 5 | $fill in the blank 6 |
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