Question
Conok Company has a fiscal year ending on Dec 31 each year. The company purchased (on April 1, 2015) equipment with a total cost of
Conok Company has a fiscal year ending on Dec 31 each year. The company purchased (on April 1, 2015) equipment with a total cost of $500,000, estimated useful life of 10 years, and estimated salvage value of $70,000. On Jan 1, 2017, the company automated the equipment at a cost of $200,000 to facilitate 24 hours operations. This doubled production of the asset but the useful life was decreased by 4 years. Prepare a depreciation table (like the one shown below) to calculate the depreciation expense and the accumulated depreciation each year using the double declining balance method.
YEAR | BEGINNING NET BOOK VALUE | DEPRECIATION RATE (%) | DEPRECIATION EXPENSE | ACCUMULATED DEPRECIATION | ENDING NET BOOK VALUE |
2015 | |||||
2016 | |||||
2017 | |||||
2018 | |||||
2019 | |||||
2020 | |||||
2021 | |||||
TOTAL |
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