The depreciation schedule for certain equipment has been arrived at by various methods. The estimated salvage value of the equipment at the end of its 7 years useful life is $366. Identify the resulting depreciation schedules. YEAR I || 1 2 3 4 5 6 7 III IV $1335 2336.25 2775 3632 $1335 2002.5 1982 2273 $1335 1668.75 1416 1423 $1335 1335 1011 891 $1335 1001.25 722 558 $1335 667.5 515 349 $1335 333.75 368 219 Which scheme represents DDB depreciation and how much is the first yea depreciation? a. III, $2775 O b. 1, $1335 O c. IV, $3632 O d. II, $2336
The depreciation schedule for certain equipment has been arrived at by various methods. The estimated salvage value of the equipment at the end of its 7 years useful life is $366. Identify the resulting depreciation schedules. YEAR I || 1 2 3 4 5 6 7 III IV $1335 2336.25 2775 3632 $1335 2002.5 1982 2273 $1335 1668.75 1416 1423 $1335 1335 1011 891 $1335 1001.25 722 558 $1335 667.5 515 349 $1335 333.75 368 219 Which scheme represents DDB depreciation and how much is the first yea depreciation? a. III, $2775 O b. 1, $1335 O c. IV, $3632 O d. II, $2336
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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.
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Transcribed Image Text:The depreciation schedule for certain equipment has been arrived at by
various methods. The estimated salvage value of the equipment at the end
of its 7 years useful life is $366. Identify the resulting depreciation
schedules.
YEAR I ||
1
2
3
4
5
6
7
III
IV
$1335 2336.25 2775 3632
$1335 2002.5 1982 2273
$1335 1668.75 1416 1423
$1335 1335 1011 891
$1335 1001.25 722 558
$1335 667.5 515 349
$1335 333.75 368 219
Which scheme represents DDB depreciation and how much is the first year
depreciation?
a. III, $2775
O b. 1, $1335
O c. IV, $3632
O d. II, $2336
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