Declining Balance Example - Nova Company purchases a new tug boat for $400,000 at the beginning of 2023. Nova will depreciate this asset using the Declining Balance at Twice the Straight-Line Rate method. Nova estimates the tug to have a useful life of 10 years and a residual value of $29,000. 9. Declining Balance Example - Without considering depreciation, what amount of cost will Nova Company show for the tug boat on the balance sheet? a $291,000 d. $29,000 b. $400,000 e. $360,000 c. $371,000 IM 10. Declining Balance Example - What amount of depreciation expense will Nova record on the tug boat in 20232 AM a $371,000 d. $40,000 AM b. $37,100 e. $80,000 $74,200 M M 11. Declining Balance Example - What will be the net book value of the tug boat at the end of 2023? PM a $320,000 c. $360,000 M b. $29,000 d. $291,000 OM M 12. Declining Balance Example - What amount of depreciation expense will Nova record on the tug boat in 20242 ct2 $64,000 c. $36,000 b. $371,000 d. $58,200 RE 13. Declining Balance Example - What will be the net book value of the tug boat at the end of 2024? VIN $256,000 d. $29,000 b. $227,000 e. $301,800 our c. $267,600 son c. a. 3