Which of the following formulas in cell CB, when copied to cells C9 through C12, would yield the correct amount of double-declining- balance depreciation? 1 2 Cost 3 Salvage 4 Life (in years) 5 6 78 A 9 10 11 12 Year 1 2 3 4 5 B $440,000 $40,000 5 January 1 book value $440,000 $264,000 $158,400 $95,040 $57,024 C Depreciation Expense $176,000 $105,600 $63,360 $38,016 $17,024 D Accumulated Depreciation $176,000 $281,600 $344,960 $382,976 $400,000 E December 31 book value $264,000 $158,400 $95,040 $57,024 $40,000
Which of the following formulas in cell CB, when copied to cells C9 through C12, would yield the correct amount of double-declining- balance depreciation? 1 2 Cost 3 Salvage 4 Life (in years) 5 6 78 A 9 10 11 12 Year 1 2 3 4 5 B $440,000 $40,000 5 January 1 book value $440,000 $264,000 $158,400 $95,040 $57,024 C Depreciation Expense $176,000 $105,600 $63,360 $38,016 $17,024 D Accumulated Depreciation $176,000 $281,600 $344,960 $382,976 $400,000 E December 31 book value $264,000 $158,400 $95,040 $57,024 $40,000
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN:9781305666160
Author:James A. Heintz, Robert W. Parry
Publisher:James A. Heintz, Robert W. Parry
Chapter18: Accounting For Long-term Assets
Section: Chapter Questions
Problem 3CE
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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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