**Required Information**Use the following information for the exercises below.[The following information applies to the questions displayed below.]On April 1, Cyclone’s Co. purchases a trencher for $302,000. The machine is expected to last five years and have a salvage value of $51,000.**Exercise 8-12: Double-declining-balance, partial-year depreciation LO C2**Compute depreciation expense at December 31 for both the first year and second year, assuming the company uses the double-declining-balance method. (Enter all amounts as positive values.)**Table Explanation:**The table is divided into two annual periods (Year 1 and Year 2) and contains columns related to the depreciation process:1. **Annual Period**: Lists the year (Year 1, Year 2).2. **Depreciation for the Period**: - **Beginning of Period Book Value**: The initial value of the asset at the start of the year. - **Depreciation Rate**: The rate at which the asset will be depreciated. - **Partial Year**: Indicates if the depreciation is calculated for a partial year. - **Depreciation Expense**: The amount depreciated for the period.3. **End of Period**: - **Accumulated Depreciation**: The total depreciation accumulated up to the end of the year. - **Book Value**: The reduced value of the asset after accounting for depreciation by the end of the period.

Name: **Required Information**Use the following information for the exercis
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Description: **Required Information**Use the following information for the exercises below.[The following information applies to the questions displayed below.]On April 1, Cyclone’s Co. purchases a trencher for $302,000. The machine is expected to last five year

Solution: Depreciation rate - SLM = 1/5 = 20% Depreciation rate - DDB = 20%*2 = 40%

Business

Accounting

On April 1, Cyclone's Co. purchases a trencher for $302,000. The machine is expected to last five years and have a salvage value of $51,000. Exercise 8-12 Double-declining-balance, partial-year depreciation LO C2 Compute depreciation expense at December 31 for both the first year and second year assuming the company uses the double- declining-balance method. (Enter all amounts as positive values.)

On April 1, Cyclone's Co. purchases a trencher for $302,000. The machine is expected to last five years and have a salvage value of $51,000. Exercise 8-12 Double-declining-balance, partial-year depreciation LO C2 Compute depreciation expense at December 31 for both the first year and second year assuming the company uses the double- declining-balance method. (Enter all amounts as positive values.)

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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