Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Building is 350,000, Equipment is 262,500, Truck, 87,500 and cash is 700,000 The equipment has a salvage value of $10,000, life expectancy of 5 years.
Building is 350,000, Equipment is 262,500, Truck, 87,500 and cash is 700,000
The equipment has a salvage value of $10,000, life | |||||
expectancy of 5 years. Calculate depeciation for | |||||
all years necessary using the double declining balace. | |||||
What is the book value at the beginning of year 6? | |||||
Depreciation | Book-Value | ||||
Year 1 | |||||
Year 2 | |||||
Year 3 | |||||
Year 4 | |||||
Year 5 | |||||
Year 6 | |||||
It is planned that the delivery truck will be driven | |||||
200,000miles during its life time of 5 years. Mileage | |||||
is as follows: | |||||
Year 1: 65,000 miles, Year 2: 79,500 miles, Year 3: 45,325 | |||||
Year 4: 9,690 miles, Year 5: 8,650 miles. | |||||
Calculate depreciation and book value. | |||||
Depreciation | Book-Value | ||||
Year 1 | |||||
Year 2 | |||||
Year 3 | |||||
Year 4 | |||||
Year 5 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started