The translation may be awkward. Please tell me the detailed explanation and answer. Please tell me how the answer process comes out. 1. Double-declining-balance method On January 1, 2018, Company A purchased one mechanical device. The acquisition cost of machinery is 800,000, and the content training is 8 years. The double-declining-balance method is applied separately when the residual value of the machine is 300,000 and 100,000, and the depreciation cost of the machine in 2020, 2021 and 2022 is calculated and depreciated. If there is a difference, please explain why. (Round to the nearest whole number when calculating depreciation.) 2, depreciation / sum-of-the-years'-digits method On October 1, Company A paid 1,600,000,000 cash and purchased the building. It is estimated that this building can be used for 5 years. The estimated residual value of the building is 100,000,000. If you use the sum-of-the-years'-digits method, calculate the depreciation of the building on your statement of comprehensive income.
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.
The translation may be awkward. Please tell me the detailed explanation and answer.
Please tell me how the answer process comes out.
1. Double-declining-balance method
On January 1, 2018, Company A purchased one mechanical device. The acquisition cost of machinery is 800,000, and the content training is 8 years. The double-declining-balance method is applied separately when the residual value of the machine is 300,000 and 100,000, and the
2, depreciation / sum-of-the-years'-digits method
On October 1, Company A paid 1,600,000,000 cash and purchased the building. It is estimated that this building can be used for 5 years. The estimated residual value of the building is 100,000,000. If you use the sum-of-the-years'-digits method, calculate the depreciation of the building on your statement of comprehensive income.
![5.
[If the remaining value is 300300,000]
[If the remaining value is 100100,000]
Year
Depreciation fee.
Year
Depreciation fe.
The year ef the
year 2018
200,000
The year of the
year 2018
200,000
2019...
150,000
2019...
150,000
The year of
2020.
The year of
2020.
112,500
112,500
84,375
The year 2021.
The year 2021.
37,500
63,281
2022...
2022...
*Note that the final book value cannot be smaller than the
residual value.
6. Since it is an in-flight acquisition, monthly
calculation is performed.
Depreciation expenses for acquisition year = 125,000,000 won
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