Q1/The cost of a vehicle at the time of purchasing is(80,000)$, its expected useful life is (10) years , theselvage value is (10,000) $, determine the followingthe depreciation value at the ond of (gnycar using declinebalance method-the book value at the end of (0") year using straight linemethedtetal depreciation for (7) years using sum ofyears digitsmethod-the book value at the end of (4th ) year using sum of yeardigits method.-If the vehicle sold after (5) years with 40,000 $, was it soldwith profit? Use decline balance method.-depreciation at the end of (5th year using straight linemethod.

Name: Q1/The cost of a vehicle at the time of purchasing is(80,000)$, its e
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Description: Q1/The cost of a vehicle at the time of purchasing is(80,000)$, its expected useful life is (10) years , theselvage value is (10,000) $, determine the followingthe depreciation value at the ond of (gnycar using declinebalance method-the book value a

Business

Accounting

-the book value at the end of (4th ) year using sum of year digits method. -If the vehicle sold after (5) years with 40,000 $, was it sold with profit? Use decline balance method. -depreciation at the end of (5th) year using straight line method.

-the book value at the end of (4th ) year using sum of year digits method. -If the vehicle sold after (5) years with 40,000 $, was it sold with profit? Use decline balance method. -depreciation at the end of (5th) year using straight line method.

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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The formula for double-declining-balance depreciation on an asset with a five-year life in its second year is Book Value × 40% = Depreciation Expense. (Book Value – Residual Value) × 40% = Depreciation Expense. (Book Value – Residual Value) × 20% = Depreciation Expense. (Original Cost × 30%) – Residual Value = Depreciation Expense.
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