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On number 5 I don't know what to use as the starting and ending periods for the formula.

On number 5 I don't know what to use as the starting and ending periods for the formula.

FINANCIAL ACCOUNTING
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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On number 5 I don't know what to use as the starting and ending periods for the formula. 

### Depreciation In-Class Lab Work **Objective:** Calculate the depreciation value and asset value for a piece of equipment with a $30,000 cost, $2,000 salvage value, and a 10-year life. **Methods to Calculate Depreciation:** 1. **Straight-line Depreciation** 2. **Sum of Years’ Digits Depreciation** 3. **Declining Balance Depreciation** 4. **Double Declining Balance Depreciation** 5. **Variable Declaring Balance Depreciation** **Instructions:** 1. Calculate the depreciation using each of the above methods. 2. Create a chart to show the asset balance using each of the five methods. ### Detailed Descriptions: 1. **Straight-line Depreciation:** - This method distributes the cost evenly over the useful life of the asset. 2. **Sum of Years’ Digits Depreciation:** - An accelerated depreciation method where more expense is recognized early in life of the asset. 3. **Declining Balance Depreciation:** - Another accelerated depreciation method which multiplies the book value by a fixed rate. 4. **Double Declining Balance Depreciation:** - A more aggressive form of declining balance method where double the straight-line rate is used. 5. **Variable Declaring Balance Depreciation:** - Another method which varies based on the declining balance but specifics may change depending on conditions. ### Expected Outcomes: A chart comparing the asset balance over time for each method, demonstrating the differences in how quickly the asset depreciates under each calculation method.
Transcribed Image Text:### Depreciation In-Class Lab Work **Objective:** Calculate the depreciation value and asset value for a piece of equipment with a $30,000 cost, $2,000 salvage value, and a 10-year life. **Methods to Calculate Depreciation:** 1. **Straight-line Depreciation** 2. **Sum of Years’ Digits Depreciation** 3. **Declining Balance Depreciation** 4. **Double Declining Balance Depreciation** 5. **Variable Declaring Balance Depreciation** **Instructions:** 1. Calculate the depreciation using each of the above methods. 2. Create a chart to show the asset balance using each of the five methods. ### Detailed Descriptions: 1. **Straight-line Depreciation:** - This method distributes the cost evenly over the useful life of the asset. 2. **Sum of Years’ Digits Depreciation:** - An accelerated depreciation method where more expense is recognized early in life of the asset. 3. **Declining Balance Depreciation:** - Another accelerated depreciation method which multiplies the book value by a fixed rate. 4. **Double Declining Balance Depreciation:** - A more aggressive form of declining balance method where double the straight-line rate is used. 5. **Variable Declaring Balance Depreciation:** - Another method which varies based on the declining balance but specifics may change depending on conditions. ### Expected Outcomes: A chart comparing the asset balance over time for each method, demonstrating the differences in how quickly the asset depreciates under each calculation method.
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