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Asset Description Acquisition Cost Salvage Value Useful Life (years) Depreciation Method Machinery $100,000 $10,000 5 ? Vehicle $50,000 $5,000 8 ? Requirements: Calculate the annual
| Asset Description | Acquisition Cost | Salvage Value | Useful Life (years) | Depreciation Method |
|---|---|---|---|---|
| Machinery | $100,000 | $10,000 | 5 | ? |
| Vehicle | $50,000 | $5,000 | 8 | ? |
Requirements:
- Calculate the annual depreciation expense using straight-line method for both assets.
- Determine the book value of each asset after 3 years.
- Calculate the depreciation expense for year 1 using the double-declining balance method.
- Discuss the advantages and disadvantages of each depreciation method.
- Recommend the most appropriate method for the company's assets.
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Accounting Principles
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
12th edition
1119132223, 978-1-119-0944, 1118875052, 978-1119132226, 978-1118875056
