Question
Bob Corporation needs your help with the double-declining-balance method of depreciation. Given the below information you should calculate the below two numbers. Invoice Price (Equipment
Bob Corporation needs your help with the double-declining-balance method of depreciation. Given the below information you should calculate the below two numbers.
Invoice Price (Equipment Purchased) => 90,000
Setup Charges (Equipment Purchased) => 6,000
Sales Tax & all Other charges (Equipment Purchase) => 10,000
Life => 12 years
Salvage Value => 800
Depreciation Expense (year # 02) _____________________________
Carrying Value (end of year # 02) ______________________________
Sue Corporation needs your help with the straight-line method of depreciation. Given the below information you should calculate the below two numbers.
Invoice Price (Equipment Purchased) => 120,000
Setup Charges (Equipment Purchased) => 6,000
Sales Tax & all Other charges (Equipment Purchase) => 10,000
Life => 10 years
Salvage Value => 4,000
Depreciation Expense (year # 02) _____________________________
This asset was sold for 150,000 during year #03 (1/4 of the year passed during year # 03 (hint: remember this event will require two steps)).
Gain or Loss (year # 03) ______________________________
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