i. MACRS depreciation .

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 11, Problem 49P

To determine

i.

MACRS depreciation.

Expert Solution

Answer to Problem 49P

MACRS depreciation is $ 84800.

Explanation of Solution

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

A 10-year property class with half-yearly convention has been assumed.

MACRS
Year	Depreciation Base ($)	Depreciation Rate (%)	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	10	20,000	1,80,000
2	2,00,000	18	36,000	1,44,000
3	2,00,000	14.4	28,800	1,15,200
TOTAL			84,800

Conclusion:

MACRS depreciation is $ 84800.

To determine

ii.

Straight Line Depreciation.

Expert Solution

Answer to Problem 49P

Straight Line Depreciation is $20000 per annum.

Explanation of Solution

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

SLM depreciation =

Cost / Useful life=$20000010 = $20,000 per year

Year	Beginning-of-year Book Value ($)	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	20,000	1,80,000
2	1,80,000	20,000	1,60,000
3	1,60,000	20,000	1,40,000
TOTAL		60,000

Conclusion:

Straight Line Depreciation is $20000 per annum

iii.

Sum-of-years-digit depreciation.

Sum-of-years-digit depreciation is $98182.

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

Sum-of-years-digit depreciation (SOYD)

=1+2+3+4+5+6+7+8+9+10=55

Depreciation base = $200,000

Annual depreciation in year N = Depreciation base×(Number of years remaining at beginning of year N)SOYD

SOYD
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	10/55	36,364	1,63,636
2	2,00,000	9/55	32,727	1,30,909
3	2,00,000	8/55	29,091	1,01,818
TOTAL			98,182

Conclusion:

Sum-of-years-digit depreciation is $98182.

iv.

Double declining balance depreciation.

Double declining balance depreciation is $ 97600.

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

SLM Depreciation rate =

1Useful Life =110 = 0.1

DDB Rate =

0.1×2=0.2

DDB
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	0.2	40,000	1,60,000
2	1,60,000	0.2	32,000	1,28,000
3	1,28,000	0.2	25,600	1,02,400
TOTAL			97,600

Conclusion:

Double declining balance depreciation is $ 97600

(e).

v.

150% Declining balance depreciation.

150% Declining balance depreciation is $77175.

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

150% Declining balance depreciation rate = 0.1 x 1.5 = 0.15

150% DECLINING BALANCE METHOD
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	0.15	30,000	1,70,000
2	1,70,000	0.15	25,500	1,44,500
3	1,44,500	0.15	21,675	1,22,825
TOTAL			77,175

Conclusion:

150% Declining balance depreciation is $77175.

To determine

iii.

Sum-of-years-digit depreciation.

Expert Solution

Answer to Problem 49P

Sum-of-years-digit depreciation is $98182.

Explanation of Solution

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

Sum-of-years-digit depreciation (SOYD)

=1+2+3+4+5+6+7+8+9+10=55

Depreciation base = $200,000

Annual depreciation in year N = Depreciation base×(Number of years remaining at beginning of year N)SOYD

SOYD
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	10/55	36,364	1,63,636
2	2,00,000	9/55	32,727	1,30,909
3	2,00,000	8/55	29,091	1,01,818
TOTAL			98,182

Conclusion:

Sum-of-years-digit depreciation is $98182.

iv.

Double declining balance depreciation.

Double declining balance depreciation is $ 97600.

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

SLM Depreciation rate =

1Useful Life =110 = 0.1

DDB Rate =

0.1×2=0.2

DDB
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	0.2	40,000	1,60,000
2	1,60,000	0.2	32,000	1,28,000
3	1,28,000	0.2	25,600	1,02,400
TOTAL			97,600

Conclusion:

Double declining balance depreciation is $ 97600

(e).

v.

150% Declining balance depreciation.

150% Declining balance depreciation is $77175.

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

150% Declining balance depreciation rate = 0.1 x 1.5 = 0.15

150% DECLINING BALANCE METHOD
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	0.15	30,000	1,70,000
2	1,70,000	0.15	25,500	1,44,500
3	1,44,500	0.15	21,675	1,22,825
TOTAL			77,175

Conclusion:

150% Declining balance depreciation is $77175.

To determine

iv.

Double declining balance depreciation.

Expert Solution

Answer to Problem 49P

Double declining balance depreciation is $ 97600.

Explanation of Solution

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

SLM Depreciation rate =

1Useful Life =110 = 0.1

DDB Rate =

0.1×2=0.2

DDB
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	0.2	40,000	1,60,000
2	1,60,000	0.2	32,000	1,28,000
3	1,28,000	0.2	25,600	1,02,400
TOTAL			97,600

Conclusion:

Double declining balance depreciation is $ 97600

(e).

To determine

v.

150% Declining balance depreciation.

Expert Solution

Answer to Problem 49P

150% Declining balance depreciation is $77175.

Explanation of Solution

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

150% Declining balance depreciation rate = 0.1 x 1.5 = 0.15

150% DECLINING BALANCE METHOD
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	0.15	30,000	1,70,000
2	1,70,000	0.15	25,500	1,44,500
3	1,44,500	0.15	21,675	1,22,825
TOTAL			77,175

Conclusion:

150% Declining balance depreciation is $77175.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Angelo: Marijuana should be legalized A.All of Angelo’s friends smoke marijuana.b.Legalizing marijuana would reduce the consumption of marijuana and save lives, money, and resources.c.Angelo has already said on television that marijuana should be legalized.d.Angelo likes to smoke marijuana

Introduction and Problem Statement This report examines … [Include a statement of the main problem in the case.] Background [Detailed company/case background tying directly to the context of the specific case study. Summarize data from the case scenario that is pertinent to solving the stated problem.] Analysis [Thoroughly analyze the questions asked of you here as well as the main questions suggested within the case study.] Alternatives and Evaluation [This section should list some options available as solutions and discuss the pros and cons of each alternative.] Recommendations [This section should suggest the recommended solution and validation for this selection.] Action Plan [This section should provide a step-by-step actionable guide to achieve the recommended decision divided by short and long term activities.] Conclusion [Concisely summarize the case options, recommended decision and future predictions ofr the company.] References Include any references used.…

What is Bitcoin? How important is it to businesses and individuals? How does it cause environmental damage and is that damage worth continued uses of Bitcoin?

Answer 2

Question

Chapter 11, Problem 49P

To determine

i.

MACRS depreciation.

Expert Solution

Answer to Problem 49P

MACRS depreciation is $ 84800.

Explanation of Solution

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

A 10-year property class with half-yearly convention has been assumed.

MACRS
Year	Depreciation Base ($)	Depreciation Rate (%)	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	10	20,000	1,80,000
2	2,00,000	18	36,000	1,44,000
3	2,00,000	14.4	28,800	1,15,200
TOTAL			84,800

Conclusion:

MACRS depreciation is $ 84800.

To determine

ii.

Straight Line Depreciation.

Expert Solution

Answer to Problem 49P

Straight Line Depreciation is $20000 per annum.

Explanation of Solution

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

SLM depreciation =

Cost / Useful life=$20000010 = $20,000 per year

Year	Beginning-of-year Book Value ($)	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	20,000	1,80,000
2	1,80,000	20,000	1,60,000
3	1,60,000	20,000	1,40,000
TOTAL		60,000

Conclusion:

Straight Line Depreciation is $20000 per annum

iii.

Sum-of-years-digit depreciation.

Sum-of-years-digit depreciation is $98182.

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

Sum-of-years-digit depreciation (SOYD)

=1+2+3+4+5+6+7+8+9+10=55

Depreciation base = $200,000

Annual depreciation in year N = Depreciation base×(Number of years remaining at beginning of year N)SOYD

SOYD
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	10/55	36,364	1,63,636
2	2,00,000	9/55	32,727	1,30,909
3	2,00,000	8/55	29,091	1,01,818
TOTAL			98,182

Conclusion:

Sum-of-years-digit depreciation is $98182.

iv.

Double declining balance depreciation.

Double declining balance depreciation is $ 97600.

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

SLM Depreciation rate =

1Useful Life =110 = 0.1

DDB Rate =

0.1×2=0.2

DDB
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	0.2	40,000	1,60,000
2	1,60,000	0.2	32,000	1,28,000
3	1,28,000	0.2	25,600	1,02,400
TOTAL			97,600

Conclusion:

Double declining balance depreciation is $ 97600

(e).

v.

150% Declining balance depreciation.

150% Declining balance depreciation is $77175.

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

150% Declining balance depreciation rate = 0.1 x 1.5 = 0.15

150% DECLINING BALANCE METHOD
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	0.15	30,000	1,70,000
2	1,70,000	0.15	25,500	1,44,500
3	1,44,500	0.15	21,675	1,22,825
TOTAL			77,175

Conclusion:

150% Declining balance depreciation is $77175.

To determine

iii.

Sum-of-years-digit depreciation.

Expert Solution

Answer to Problem 49P

Sum-of-years-digit depreciation is $98182.

Explanation of Solution

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

Sum-of-years-digit depreciation (SOYD)

=1+2+3+4+5+6+7+8+9+10=55

Depreciation base = $200,000

Annual depreciation in year N = Depreciation base×(Number of years remaining at beginning of year N)SOYD

SOYD
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	10/55	36,364	1,63,636
2	2,00,000	9/55	32,727	1,30,909
3	2,00,000	8/55	29,091	1,01,818
TOTAL			98,182

Conclusion:

Sum-of-years-digit depreciation is $98182.

iv.

Double declining balance depreciation.

Double declining balance depreciation is $ 97600.

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

SLM Depreciation rate =

1Useful Life =110 = 0.1

DDB Rate =

0.1×2=0.2

DDB
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	0.2	40,000	1,60,000
2	1,60,000	0.2	32,000	1,28,000
3	1,28,000	0.2	25,600	1,02,400
TOTAL			97,600

Conclusion:

Double declining balance depreciation is $ 97600

(e).

v.

150% Declining balance depreciation.

150% Declining balance depreciation is $77175.

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

150% Declining balance depreciation rate = 0.1 x 1.5 = 0.15

150% DECLINING BALANCE METHOD
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	0.15	30,000	1,70,000
2	1,70,000	0.15	25,500	1,44,500
3	1,44,500	0.15	21,675	1,22,825
TOTAL			77,175

Conclusion:

150% Declining balance depreciation is $77175.

To determine

iv.

Double declining balance depreciation.

Expert Solution

Answer to Problem 49P

Double declining balance depreciation is $ 97600.

Explanation of Solution

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

SLM Depreciation rate =

1Useful Life =110 = 0.1

DDB Rate =

0.1×2=0.2

DDB
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	0.2	40,000	1,60,000
2	1,60,000	0.2	32,000	1,28,000
3	1,28,000	0.2	25,600	1,02,400
TOTAL			97,600

Conclusion:

Double declining balance depreciation is $ 97600

(e).

To determine

v.

150% Declining balance depreciation.

Expert Solution

Answer to Problem 49P

150% Declining balance depreciation is $77175.

Explanation of Solution

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

150% Declining balance depreciation rate = 0.1 x 1.5 = 0.15

150% DECLINING BALANCE METHOD
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	0.15	30,000	1,70,000
2	1,70,000	0.15	25,500	1,44,500
3	1,44,500	0.15	21,675	1,22,825
TOTAL			77,175

Conclusion:

150% Declining balance depreciation is $77175.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 11, Problem 49P

To determine

i.

MACRS depreciation.

Expert Solution

Answer to Problem 49P

MACRS depreciation is $ 84800.

Explanation of Solution

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

A 10-year property class with half-yearly convention has been assumed.

MACRS
Year	Depreciation Base ($)	Depreciation Rate (%)	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	10	20,000	1,80,000
2	2,00,000	18	36,000	1,44,000
3	2,00,000	14.4	28,800	1,15,200
TOTAL			84,800

Conclusion:

MACRS depreciation is $ 84800.

To determine

ii.

Straight Line Depreciation.

Expert Solution

Answer to Problem 49P

Straight Line Depreciation is $20000 per annum.

Explanation of Solution

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

SLM depreciation =

Cost / Useful life=$20000010 = $20,000 per year

Year	Beginning-of-year Book Value ($)	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	20,000	1,80,000
2	1,80,000	20,000	1,60,000
3	1,60,000	20,000	1,40,000
TOTAL		60,000

Conclusion:

Straight Line Depreciation is $20000 per annum

iii.

Sum-of-years-digit depreciation.

Sum-of-years-digit depreciation is $98182.

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

Sum-of-years-digit depreciation (SOYD)

=1+2+3+4+5+6+7+8+9+10=55

Depreciation base = $200,000

Annual depreciation in year N = Depreciation base×(Number of years remaining at beginning of year N)SOYD

SOYD
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	10/55	36,364	1,63,636
2	2,00,000	9/55	32,727	1,30,909
3	2,00,000	8/55	29,091	1,01,818
TOTAL			98,182

Conclusion:

Sum-of-years-digit depreciation is $98182.

iv.

Double declining balance depreciation.

Double declining balance depreciation is $ 97600.

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

SLM Depreciation rate =

1Useful Life =110 = 0.1

DDB Rate =

0.1×2=0.2

DDB
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	0.2	40,000	1,60,000
2	1,60,000	0.2	32,000	1,28,000
3	1,28,000	0.2	25,600	1,02,400
TOTAL			97,600

Conclusion:

Double declining balance depreciation is $ 97600

(e).

v.

150% Declining balance depreciation.

150% Declining balance depreciation is $77175.

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

150% Declining balance depreciation rate = 0.1 x 1.5 = 0.15

150% DECLINING BALANCE METHOD
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	0.15	30,000	1,70,000
2	1,70,000	0.15	25,500	1,44,500
3	1,44,500	0.15	21,675	1,22,825
TOTAL			77,175

Conclusion:

150% Declining balance depreciation is $77175.

To determine

iii.

Sum-of-years-digit depreciation.

Expert Solution

Answer to Problem 49P

Sum-of-years-digit depreciation is $98182.

Explanation of Solution

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

Sum-of-years-digit depreciation (SOYD)

=1+2+3+4+5+6+7+8+9+10=55

Depreciation base = $200,000

Annual depreciation in year N = Depreciation base×(Number of years remaining at beginning of year N)SOYD

SOYD
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	10/55	36,364	1,63,636
2	2,00,000	9/55	32,727	1,30,909
3	2,00,000	8/55	29,091	1,01,818
TOTAL			98,182

Conclusion:

Sum-of-years-digit depreciation is $98182.

iv.

Double declining balance depreciation.

Double declining balance depreciation is $ 97600.

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

SLM Depreciation rate =

1Useful Life =110 = 0.1

DDB Rate =

0.1×2=0.2

DDB
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	0.2	40,000	1,60,000
2	1,60,000	0.2	32,000	1,28,000
3	1,28,000	0.2	25,600	1,02,400
TOTAL			97,600

Conclusion:

Double declining balance depreciation is $ 97600

(e).

v.

150% Declining balance depreciation.

150% Declining balance depreciation is $77175.

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

150% Declining balance depreciation rate = 0.1 x 1.5 = 0.15

150% DECLINING BALANCE METHOD
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	0.15	30,000	1,70,000
2	1,70,000	0.15	25,500	1,44,500
3	1,44,500	0.15	21,675	1,22,825
TOTAL			77,175

Conclusion:

150% Declining balance depreciation is $77175.

To determine

iv.

Double declining balance depreciation.

Expert Solution

Answer to Problem 49P

Double declining balance depreciation is $ 97600.

Explanation of Solution

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

SLM Depreciation rate =

1Useful Life =110 = 0.1

DDB Rate =

0.1×2=0.2

DDB
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	0.2	40,000	1,60,000
2	1,60,000	0.2	32,000	1,28,000
3	1,28,000	0.2	25,600	1,02,400
TOTAL			97,600

Conclusion:

Double declining balance depreciation is $ 97600

(e).

To determine

v.

150% Declining balance depreciation.

Expert Solution

Answer to Problem 49P

150% Declining balance depreciation is $77175.

Explanation of Solution

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

150% Declining balance depreciation rate = 0.1 x 1.5 = 0.15

150% DECLINING BALANCE METHOD
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	0.15	30,000	1,70,000
2	1,70,000	0.15	25,500	1,44,500
3	1,44,500	0.15	21,675	1,22,825
TOTAL			77,175

Conclusion:

150% Declining balance depreciation is $77175.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 11, Problem 49P

To determine

i.

MACRS depreciation.

Expert Solution

Answer to Problem 49P

MACRS depreciation is $ 84800.

Explanation of Solution

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

A 10-year property class with half-yearly convention has been assumed.

MACRS
Year	Depreciation Base ($)	Depreciation Rate (%)	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	10	20,000	1,80,000
2	2,00,000	18	36,000	1,44,000
3	2,00,000	14.4	28,800	1,15,200
TOTAL			84,800

Conclusion:

MACRS depreciation is $ 84800.

To determine

ii.

Straight Line Depreciation.

Expert Solution

Answer to Problem 49P

Straight Line Depreciation is $20000 per annum.

Explanation of Solution

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

SLM depreciation =

Cost / Useful life=$20000010 = $20,000 per year

Year	Beginning-of-year Book Value ($)	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	20,000	1,80,000
2	1,80,000	20,000	1,60,000
3	1,60,000	20,000	1,40,000
TOTAL		60,000

Conclusion:

Straight Line Depreciation is $20000 per annum

iii.

Sum-of-years-digit depreciation.

Sum-of-years-digit depreciation is $98182.

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

Sum-of-years-digit depreciation (SOYD)

=1+2+3+4+5+6+7+8+9+10=55

Depreciation base = $200,000

Annual depreciation in year N = Depreciation base×(Number of years remaining at beginning of year N)SOYD

SOYD
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	10/55	36,364	1,63,636
2	2,00,000	9/55	32,727	1,30,909
3	2,00,000	8/55	29,091	1,01,818
TOTAL			98,182

Conclusion:

Sum-of-years-digit depreciation is $98182.

iv.

Double declining balance depreciation.

Double declining balance depreciation is $ 97600.

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

SLM Depreciation rate =

1Useful Life =110 = 0.1

DDB Rate =

0.1×2=0.2

DDB
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	0.2	40,000	1,60,000
2	1,60,000	0.2	32,000	1,28,000
3	1,28,000	0.2	25,600	1,02,400
TOTAL			97,600

Conclusion:

Double declining balance depreciation is $ 97600

(e).

v.

150% Declining balance depreciation.

150% Declining balance depreciation is $77175.

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

150% Declining balance depreciation rate = 0.1 x 1.5 = 0.15

150% DECLINING BALANCE METHOD
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	0.15	30,000	1,70,000
2	1,70,000	0.15	25,500	1,44,500
3	1,44,500	0.15	21,675	1,22,825
TOTAL			77,175

Conclusion:

150% Declining balance depreciation is $77175.

To determine

iii.

Sum-of-years-digit depreciation.

Expert Solution

Answer to Problem 49P

Sum-of-years-digit depreciation is $98182.

Explanation of Solution

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

Sum-of-years-digit depreciation (SOYD)

=1+2+3+4+5+6+7+8+9+10=55

Depreciation base = $200,000

Annual depreciation in year N = Depreciation base×(Number of years remaining at beginning of year N)SOYD

SOYD
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	10/55	36,364	1,63,636
2	2,00,000	9/55	32,727	1,30,909
3	2,00,000	8/55	29,091	1,01,818
TOTAL			98,182

Conclusion:

Sum-of-years-digit depreciation is $98182.

iv.

Double declining balance depreciation.

Double declining balance depreciation is $ 97600.

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

SLM Depreciation rate =

1Useful Life =110 = 0.1

DDB Rate =

0.1×2=0.2

DDB
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	0.2	40,000	1,60,000
2	1,60,000	0.2	32,000	1,28,000
3	1,28,000	0.2	25,600	1,02,400
TOTAL			97,600

Conclusion:

Double declining balance depreciation is $ 97600

(e).

v.

150% Declining balance depreciation.

150% Declining balance depreciation is $77175.

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

150% Declining balance depreciation rate = 0.1 x 1.5 = 0.15

150% DECLINING BALANCE METHOD
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	0.15	30,000	1,70,000
2	1,70,000	0.15	25,500	1,44,500
3	1,44,500	0.15	21,675	1,22,825
TOTAL			77,175

Conclusion:

150% Declining balance depreciation is $77175.

To determine

iv.

Double declining balance depreciation.

Expert Solution

Answer to Problem 49P

Double declining balance depreciation is $ 97600.

Explanation of Solution

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

SLM Depreciation rate =

1Useful Life =110 = 0.1

DDB Rate =

0.1×2=0.2

DDB
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	0.2	40,000	1,60,000
2	1,60,000	0.2	32,000	1,28,000
3	1,28,000	0.2	25,600	1,02,400
TOTAL			97,600

Conclusion:

Double declining balance depreciation is $ 97600

(e).

To determine

v.

150% Declining balance depreciation.

Expert Solution

Answer to Problem 49P

150% Declining balance depreciation is $77175.

Explanation of Solution

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

150% Declining balance depreciation rate = 0.1 x 1.5 = 0.15

150% DECLINING BALANCE METHOD
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	0.15	30,000	1,70,000
2	1,70,000	0.15	25,500	1,44,500
3	1,44,500	0.15	21,675	1,22,825
TOTAL			77,175

Conclusion:

150% Declining balance depreciation is $77175.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 11, Problem 49P

To determine

i.

MACRS depreciation.

Expert Solution

Answer to Problem 49P

MACRS depreciation is $ 84800.

Explanation of Solution

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

A 10-year property class with half-yearly convention has been assumed.

MACRS
Year	Depreciation Base ($)	Depreciation Rate (%)	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	10	20,000	1,80,000
2	2,00,000	18	36,000	1,44,000
3	2,00,000	14.4	28,800	1,15,200
TOTAL			84,800

Conclusion:

MACRS depreciation is $ 84800.

To determine

ii.

Straight Line Depreciation.

Expert Solution

Answer to Problem 49P

Straight Line Depreciation is $20000 per annum.

Explanation of Solution

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

SLM depreciation =

Cost / Useful life=$20000010 = $20,000 per year

Year	Beginning-of-year Book Value ($)	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	20,000	1,80,000
2	1,80,000	20,000	1,60,000
3	1,60,000	20,000	1,40,000
TOTAL		60,000

Conclusion:

Straight Line Depreciation is $20000 per annum

iii.

Sum-of-years-digit depreciation.

Sum-of-years-digit depreciation is $98182.

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

Sum-of-years-digit depreciation (SOYD)

=1+2+3+4+5+6+7+8+9+10=55

Depreciation base = $200,000

Annual depreciation in year N = Depreciation base×(Number of years remaining at beginning of year N)SOYD

SOYD
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	10/55	36,364	1,63,636
2	2,00,000	9/55	32,727	1,30,909
3	2,00,000	8/55	29,091	1,01,818
TOTAL			98,182

Conclusion:

Sum-of-years-digit depreciation is $98182.

iv.

Double declining balance depreciation.

Double declining balance depreciation is $ 97600.

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

SLM Depreciation rate =

1Useful Life =110 = 0.1

DDB Rate =

0.1×2=0.2

DDB
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	0.2	40,000	1,60,000
2	1,60,000	0.2	32,000	1,28,000
3	1,28,000	0.2	25,600	1,02,400
TOTAL			97,600

Conclusion:

Double declining balance depreciation is $ 97600

(e).

v.

150% Declining balance depreciation.

150% Declining balance depreciation is $77175.

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

150% Declining balance depreciation rate = 0.1 x 1.5 = 0.15

150% DECLINING BALANCE METHOD
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	0.15	30,000	1,70,000
2	1,70,000	0.15	25,500	1,44,500
3	1,44,500	0.15	21,675	1,22,825
TOTAL			77,175

Conclusion:

150% Declining balance depreciation is $77175.

To determine

iii.

Sum-of-years-digit depreciation.

Expert Solution

Answer to Problem 49P

Sum-of-years-digit depreciation is $98182.

Explanation of Solution

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

Sum-of-years-digit depreciation (SOYD)

=1+2+3+4+5+6+7+8+9+10=55

Depreciation base = $200,000

Annual depreciation in year N = Depreciation base×(Number of years remaining at beginning of year N)SOYD

SOYD
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	10/55	36,364	1,63,636
2	2,00,000	9/55	32,727	1,30,909
3	2,00,000	8/55	29,091	1,01,818
TOTAL			98,182

Conclusion:

Sum-of-years-digit depreciation is $98182.

iv.

Double declining balance depreciation.

Double declining balance depreciation is $ 97600.

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

SLM Depreciation rate =

1Useful Life =110 = 0.1

DDB Rate =

0.1×2=0.2

DDB
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	0.2	40,000	1,60,000
2	1,60,000	0.2	32,000	1,28,000
3	1,28,000	0.2	25,600	1,02,400
TOTAL			97,600

Conclusion:

Double declining balance depreciation is $ 97600

(e).

v.

150% Declining balance depreciation.

150% Declining balance depreciation is $77175.

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

150% Declining balance depreciation rate = 0.1 x 1.5 = 0.15

150% DECLINING BALANCE METHOD
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	0.15	30,000	1,70,000
2	1,70,000	0.15	25,500	1,44,500
3	1,44,500	0.15	21,675	1,22,825
TOTAL			77,175

Conclusion:

150% Declining balance depreciation is $77175.

To determine

iv.

Double declining balance depreciation.

Expert Solution

Answer to Problem 49P

Double declining balance depreciation is $ 97600.

Explanation of Solution

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

SLM Depreciation rate =

1Useful Life =110 = 0.1

DDB Rate =

0.1×2=0.2

DDB
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	0.2	40,000	1,60,000
2	1,60,000	0.2	32,000	1,28,000
3	1,28,000	0.2	25,600	1,02,400
TOTAL			97,600

Conclusion:

Double declining balance depreciation is $ 97600

(e).

To determine

v.

150% Declining balance depreciation.

Expert Solution

Answer to Problem 49P

150% Declining balance depreciation is $77175.

Explanation of Solution

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

150% Declining balance depreciation rate = 0.1 x 1.5 = 0.15

150% DECLINING BALANCE METHOD
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	0.15	30,000	1,70,000
2	1,70,000	0.15	25,500	1,44,500
3	1,44,500	0.15	21,675	1,22,825
TOTAL			77,175

Conclusion:

150% Declining balance depreciation is $77175.

Answer 6

Chapter 11, Problem 49P

To determine

i.

MACRS depreciation.

Expert Solution

Answer to Problem 49P

MACRS depreciation is $ 84800.

Explanation of Solution

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

A 10-year property class with half-yearly convention has been assumed.

MACRS
Year	Depreciation Base ($)	Depreciation Rate (%)	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	10	20,000	1,80,000
2	2,00,000	18	36,000	1,44,000
3	2,00,000	14.4	28,800	1,15,200
TOTAL			84,800

Conclusion:

MACRS depreciation is $ 84800.

Answer 7

Chapter 11, Problem 49P

To determine

i.

MACRS depreciation.

Answer 8

Expert Solution

Answer to Problem 49P

MACRS depreciation is $ 84800.

Answer 9

Expert Solution

Answer 10

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

A 10-year property class with half-yearly convention has been assumed.

MACRS
Year	Depreciation Base ($)	Depreciation Rate (%)	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	10	20,000	1,80,000
2	2,00,000	18	36,000	1,44,000
3	2,00,000	14.4	28,800	1,15,200
TOTAL			84,800

Conclusion:

MACRS depreciation is $ 84800.

Answer 13

To determine

ii.

Straight Line Depreciation.

Expert Solution

Answer to Problem 49P

Straight Line Depreciation is $20000 per annum.

Explanation of Solution

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

SLM depreciation =

Cost / Useful life=$20000010 = $20,000 per year

Year	Beginning-of-year Book Value ($)	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	20,000	1,80,000
2	1,80,000	20,000	1,60,000
3	1,60,000	20,000	1,40,000
TOTAL		60,000

Conclusion:

Straight Line Depreciation is $20000 per annum

iii.

Sum-of-years-digit depreciation.

Sum-of-years-digit depreciation is $98182.

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

Sum-of-years-digit depreciation (SOYD)

=1+2+3+4+5+6+7+8+9+10=55

Depreciation base = $200,000

Annual depreciation in year N = Depreciation base×(Number of years remaining at beginning of year N)SOYD

SOYD
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	10/55	36,364	1,63,636
2	2,00,000	9/55	32,727	1,30,909
3	2,00,000	8/55	29,091	1,01,818
TOTAL			98,182

Conclusion:

Sum-of-years-digit depreciation is $98182.

iv.

Double declining balance depreciation.

Double declining balance depreciation is $ 97600.

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

SLM Depreciation rate =

1Useful Life =110 = 0.1

DDB Rate =

0.1×2=0.2

DDB
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	0.2	40,000	1,60,000
2	1,60,000	0.2	32,000	1,28,000
3	1,28,000	0.2	25,600	1,02,400
TOTAL			97,600

Conclusion:

Double declining balance depreciation is $ 97600

(e).

v.

150% Declining balance depreciation.

150% Declining balance depreciation is $77175.

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

150% Declining balance depreciation rate = 0.1 x 1.5 = 0.15

150% DECLINING BALANCE METHOD
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	0.15	30,000	1,70,000
2	1,70,000	0.15	25,500	1,44,500
3	1,44,500	0.15	21,675	1,22,825
TOTAL			77,175

Conclusion:

150% Declining balance depreciation is $77175.

Answer 14

To determine

ii.

Straight Line Depreciation.

Answer 15

Expert Solution

Answer to Problem 49P

Straight Line Depreciation is $20000 per annum.

Answer 16

Expert Solution

Answer 17

Expert Solution

Answer 18

Expert Solution

Answer 19

Explanation of Solution

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

SLM depreciation =

Cost / Useful life=$20000010 = $20,000 per year

Year	Beginning-of-year Book Value ($)	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	20,000	1,80,000
2	1,80,000	20,000	1,60,000
3	1,60,000	20,000	1,40,000
TOTAL		60,000

Conclusion:

Straight Line Depreciation is $20000 per annum

iii.

Sum-of-years-digit depreciation.

Sum-of-years-digit depreciation is $98182.

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

Sum-of-years-digit depreciation (SOYD)

=1+2+3+4+5+6+7+8+9+10=55

Depreciation base = $200,000

Annual depreciation in year N = Depreciation base×(Number of years remaining at beginning of year N)SOYD

SOYD
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	10/55	36,364	1,63,636
2	2,00,000	9/55	32,727	1,30,909
3	2,00,000	8/55	29,091	1,01,818
TOTAL			98,182

Conclusion:

Sum-of-years-digit depreciation is $98182.

iv.

Double declining balance depreciation.

Double declining balance depreciation is $ 97600.

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

SLM Depreciation rate =

1Useful Life =110 = 0.1

DDB Rate =

0.1×2=0.2

DDB
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	0.2	40,000	1,60,000
2	1,60,000	0.2	32,000	1,28,000
3	1,28,000	0.2	25,600	1,02,400
TOTAL			97,600

Conclusion:

Double declining balance depreciation is $ 97600

(e).

v.

150% Declining balance depreciation.

150% Declining balance depreciation is $77175.

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

150% Declining balance depreciation rate = 0.1 x 1.5 = 0.15

150% DECLINING BALANCE METHOD
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	0.15	30,000	1,70,000
2	1,70,000	0.15	25,500	1,44,500
3	1,44,500	0.15	21,675	1,22,825
TOTAL			77,175

Conclusion:

150% Declining balance depreciation is $77175.

Answer 20

To determine

iii.

Sum-of-years-digit depreciation.

Expert Solution

Answer to Problem 49P

Sum-of-years-digit depreciation is $98182.

Explanation of Solution

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

Sum-of-years-digit depreciation (SOYD)

=1+2+3+4+5+6+7+8+9+10=55

Depreciation base = $200,000

Annual depreciation in year N = Depreciation base×(Number of years remaining at beginning of year N)SOYD

SOYD
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	10/55	36,364	1,63,636
2	2,00,000	9/55	32,727	1,30,909
3	2,00,000	8/55	29,091	1,01,818
TOTAL			98,182

Conclusion:

Sum-of-years-digit depreciation is $98182.

iv.

Double declining balance depreciation.

Double declining balance depreciation is $ 97600.

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

SLM Depreciation rate =

1Useful Life =110 = 0.1

DDB Rate =

0.1×2=0.2

DDB
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	0.2	40,000	1,60,000
2	1,60,000	0.2	32,000	1,28,000
3	1,28,000	0.2	25,600	1,02,400
TOTAL			97,600

Conclusion:

Double declining balance depreciation is $ 97600

(e).

v.

150% Declining balance depreciation.

150% Declining balance depreciation is $77175.

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

150% Declining balance depreciation rate = 0.1 x 1.5 = 0.15

150% DECLINING BALANCE METHOD
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	0.15	30,000	1,70,000
2	1,70,000	0.15	25,500	1,44,500
3	1,44,500	0.15	21,675	1,22,825
TOTAL			77,175

Conclusion:

150% Declining balance depreciation is $77175.

Answer 21

To determine

iii.

Sum-of-years-digit depreciation.

Answer 22

Expert Solution

Answer to Problem 49P

Sum-of-years-digit depreciation is $98182.

Answer 23

Expert Solution

Answer 24

Expert Solution

Answer 25

Expert Solution

Answer 26

Explanation of Solution

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

Sum-of-years-digit depreciation (SOYD)

=1+2+3+4+5+6+7+8+9+10=55

Depreciation base = $200,000

Annual depreciation in year N = Depreciation base×(Number of years remaining at beginning of year N)SOYD

SOYD
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	10/55	36,364	1,63,636
2	2,00,000	9/55	32,727	1,30,909
3	2,00,000	8/55	29,091	1,01,818
TOTAL			98,182

Conclusion:

Sum-of-years-digit depreciation is $98182.

iv.

Double declining balance depreciation.

Double declining balance depreciation is $ 97600.

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

SLM Depreciation rate =

1Useful Life =110 = 0.1

DDB Rate =

0.1×2=0.2

DDB
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	0.2	40,000	1,60,000
2	1,60,000	0.2	32,000	1,28,000
3	1,28,000	0.2	25,600	1,02,400
TOTAL			97,600

Conclusion:

Double declining balance depreciation is $ 97600

(e).

v.

150% Declining balance depreciation.

150% Declining balance depreciation is $77175.

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

150% Declining balance depreciation rate = 0.1 x 1.5 = 0.15

150% DECLINING BALANCE METHOD
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	0.15	30,000	1,70,000
2	1,70,000	0.15	25,500	1,44,500
3	1,44,500	0.15	21,675	1,22,825
TOTAL			77,175

Conclusion:

150% Declining balance depreciation is $77175.

Answer 27

To determine

iv.

Double declining balance depreciation.

Expert Solution

Answer to Problem 49P

Double declining balance depreciation is $ 97600.

Explanation of Solution

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

SLM Depreciation rate =

1Useful Life =110 = 0.1

DDB Rate =

0.1×2=0.2

DDB
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	0.2	40,000	1,60,000
2	1,60,000	0.2	32,000	1,28,000
3	1,28,000	0.2	25,600	1,02,400
TOTAL			97,600

Conclusion:

Double declining balance depreciation is $ 97600

(e).

Answer 28

To determine

iv.

Double declining balance depreciation.

Answer 29

Expert Solution

Answer to Problem 49P

Double declining balance depreciation is $ 97600.

Answer 30

Expert Solution

Answer 31

Expert Solution

Answer 32

Expert Solution

Answer 33

Explanation of Solution

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

SLM Depreciation rate =

1Useful Life =110 = 0.1

DDB Rate =

0.1×2=0.2

DDB
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	0.2	40,000	1,60,000
2	1,60,000	0.2	32,000	1,28,000
3	1,28,000	0.2	25,600	1,02,400
TOTAL			97,600

Conclusion:

Double declining balance depreciation is $ 97600

(e).

Answer 34

To determine

v.

150% Declining balance depreciation.

Expert Solution

Answer to Problem 49P

150% Declining balance depreciation is $77175.

Explanation of Solution

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

150% Declining balance depreciation rate = 0.1 x 1.5 = 0.15

150% DECLINING BALANCE METHOD
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	0.15	30,000	1,70,000
2	1,70,000	0.15	25,500	1,44,500
3	1,44,500	0.15	21,675	1,22,825
TOTAL			77,175

Conclusion:

150% Declining balance depreciation is $77175.

Answer 35

To determine

v.

150% Declining balance depreciation.

Answer 36

Expert Solution

Answer to Problem 49P

150% Declining balance depreciation is $77175.

Answer 37

Expert Solution

Answer 38

Expert Solution

Answer 39

Expert Solution

Answer 40

Explanation of Solution

Given:

Cost of machine = $200000

Useful Life = 10 years.

Calculation:

150% Declining balance depreciation rate = 0.1 x 1.5 = 0.15

150% DECLINING BALANCE METHOD
Year	Depreciation Base ($)	Depreciation Rate	Annual Depreciation ($)	Year-end Book Value ($)
1	2,00,000	0.15	30,000	1,70,000
2	1,70,000	0.15	25,500	1,44,500
3	1,44,500	0.15	21,675	1,22,825
TOTAL			77,175