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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 |
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