I'm doing this practice problem and I think I am doing it wrong? Could you please check my work? P9-3BOn JAN 01, 2017, Corp bought a machine for use in its factory. Cost was $120,000. Usefullife is estimated to be 4 years or 25,000 units of activity. Estimated salvage value is $8,000.3) Double-Declining Balance(Strongly suggested that you review Ex 9-7 above)Base Calc: (100 / 4 yrs = 25%) x 2 = 50%DDB Percentage Rate at twice the straight-line rate = 50%Amount to depreciationAnnual Depr Exp120,00060,000(120,000 -30,00060,000) = 60,000(120,000 60,000- 30,000) =30,0002017201820192020(120,000 - 60,000- 30,000 -30,000)x 50 % ratex 50 % ratex 50 % ratex 50 % rate30,000Accum Deprec60,00090,000120,000

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Description: I'm doing this practice problem and I think I am doing it wrong? Could you please check my work? P9-3BOn JAN 01, 2017, Corp bought a machine for use in its factory. Cost was $120,000. Usefullife is estimated to be 4 years or 25,000 units of activity.

Lets understand the basics. Depreciation is a reduction in value of asset due to wear and tear,…

Answered: On JAN 01, 2017, Corp bought a machine…

Business

Accounting

On JAN 01, 2017, Corp bought a machine for use in its factory. Cost was $120,000. Useful life is estimated to be 4 years or 25,000 units of activity. Estimated salvage value is $8,000.

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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I'm doing this practice problem and I think I am doing it wrong? Could you please check my work?

P9-3B
On JAN 01, 2017, Corp bought a machine for use in its factory. Cost was $120,000. Useful
life is estimated to be 4 years or 25,000 units of activity. Estimated salvage value is $8,000.
3) Double-Declining Balance
(Strongly suggested that you review Ex 9-7 above)
Base Calc: (100 / 4 yrs = 25%) x 2 = 50%
DDB Percentage Rate at twice the straight-line rate = 50%
Amount to depreciation
Annual Depr Exp
120,000
60,000
(120,000 -
30,000
60,000) = 60,000
(120,000 60,000
- 30,000) =
30,000
2017
2018
2019
2020
(120,000 - 60,000
- 30,000 -
30,000)
x 50 % rate
x 50 % rate
x 50 % rate
x 50 % rate
30,000
Accum Deprec
60,000
90,000
120,000

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