Explanation Given information: The cost of robot is $ 25 , 000 , scrap value is $ 2 , 500 an estimate life of eight year. Formula used: Depreciable value = Total cost − Salvage value Yearly depreciation = Total cost × double declining rate First end of year book value = Total cost − first year depreciation Yearly straight-line rate = 1 number of years of expected life yearly double-declining rate = straight-line rate × 2 Calculation: Consider the above information, Double-declining rate = straight-line rate × 2 = 1 number of years of expected life × 2 = 1 5 × 2 = 2 5 = 0.25 The depreciation value of year1 is given by Year 1 Depreciation = $ 25 , 000 × ( 0.25 ) = $ 6 , 250 The cost after 1 year is given by, End of year 1 book value = Total cost − depreciation = $25,000 − $6,250 = $18,750 The depreciation value of year2 is given by Year 2 Depreciation = previous end of year book value × ( 0.25 ) = $ 18 , 750 × ( 0.25 ) = $4,687 .5 The cost after 2 year is given by, End of year 2 book value = previous end of year book value − depreciation = $18,750 − $4,687 .5 = $14,062 .5 The depreciation value of year3 is given by Year 3 Depreciation = previous end of year book value × ( 0.25 ) = $ 14 , 062.5 × ( 0.25 ) = $3,515 .625 The cost after 3 year is given by, End of year 3 book value = previous end of year book value − depreciation = $14,062 .5 − $3,515 .625 = $10,546 .875 The depreciation value of year4 is given by Year 4 Depreciation = previous end of year book value × ( 0.25 ) = $ 10 , 546.875 × ( 0.25 ) = $2,636 .718 The cost after 4 year is given by, End of year 4 book value = previous end of year book value − depreciation = $10,546

Portfolio of Accounting Systems for Small and Medium-Sized Businesses.

11th Edition

ISBN: 9780136857761

Author: National Society of Public Accountants Staff

Publisher: Prentice Hall

See similar textbooks

Concept explainers

Unitary Method

The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.

Speed, Time, and Distance

Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 …

Profit and Loss

The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.

Units and Measurements

Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experime…

Videos

Question

Chapter 17.1, Problem 4-4SC

To determine

To calculate: The depreciation for a robot each of the eight year if the cost of robot is $25,000, scrap value is $2,500.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 17.1, Problem 4-3SC

Chapter 17.1, Problem 1SE

Students have asked these similar questions

in a coffee shop, 160 customers came in. Of these, 60 bought coffe and cake and the rest ordered just coffee. determine the probability that the next person will buy coffee and cake

Two dice are rolled and their sum calculated. Draw a table to show all of the possibilities. Determine the theoretical probability of rolling a sum of 7. And determine the theoretical probability of rolling a sum greater than 9

a. Find the value of A.b. Find pX(x) and py(y).c. Find pX|y(x|y) and py|X(y|x)d. Are x and y independent? Why or why not?

Chapter 17 Solutions

Portfolio of Accounting Systems for Small and Medium-Sized Businesses.

Ch. 17.1 - Prob. 1-1SC Ch. 17.1 - Prob. 1-2SC Ch. 17.1 - Prob. 1-3SC Ch. 17.1 - Prob. 1-4SC Ch. 17.1 - Prob. 1-5SC Ch. 17.1 - Prob. 2-1SC Ch. 17.1 - Prob. 2-2SC Ch. 17.1 - Prob. 2-3SC Ch. 17.1 - Prob. 2-4SC Ch. 17.1 - Prob. 3-1SC

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, subject and related others by exploring similar questions and additional content below.

The depreciation for a robot each of the eight year if the cost of robot is $ 25 , 000 , scrap value is $ 2 , 500 .

Solution Summary: The author explains how to calculate the depreciation schedule of a robot of eight years.

Concept explainers

Videos

To calculate: The depreciation for a robot each of the eight year if the cost of robot is $25,000, scrap value is $2,500.

Want to see the full answer?

Chapter 17 Solutions