Trubisky Corporation acquired a machine on January 1, 20X1, for $3 million and decided to depreciate it

Question:

Trubisky Corporation acquired a machine on January 1, 20X1, for $3 million and decided to depreciate it over eight years using the double-declining method. The depreciation rate each year, as a percentage of the original cost, was as follows:

Year Depreciation Percentage Year Depreciation Percentage 20X1 20.00 20X5 10.24 20X2 16.00 20X6 10.24 20X3 12.80 20X7 10.24 20X4 10.24 20X8 10.24


On January 1, 20X3, it became clear that the machine would not be used for the entire eightyear period, but rather would be retired at the end of 20X6 and that it would have no salvage value at that time. In addition, Trubisky decided to switch to the straight-line depreciation method.


Required:

What amounts of depreciation expense does Trubisky record in each year from 20X1 through 20X8?

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Financial Reporting And Analysis

ISBN: 9781260247848

8th Edition

Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer

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