Question
My professor said the example calculations are incorrect. Can you please check the calculations Example: Reducing Balance Depreciation Method An asset has a useful life
My professor said the example calculations are incorrect. Can you please check the calculations Example: Reducing Balance Depreciation Method
An asset has a useful life of 3 years.
Cost of the asset is $2,000.
Residual Value is $500.
Rate of depreciation is 50%.
Depreciation expense for the three years will be as follows:
| NBV | R.V | Rate | Depreciation | Accumalated Depreciation | ||||
| Year1: | (2000 | - | 500) | x | 50% | = | 750 | 750 |
| Year2: | (1250 | - | 500) | x | 50% | = | 375 | 1125 |
| Year3: | (875 | - | 500) | x | 50% | = | 375* | 1500 |
- See more at: http://accounting-simplified.com/financial/fixed-assets/depreciation-methods/declining-balance.html#sthash.DlDS4M7z.dpuf
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Financial Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
7th Canadian edition
1119368456, 978-1119211587, 1119211581, 978-1119320623, 978-1119368458
