Question
On January 1, 2017, company purchased a molding machine at 67.000 TL. The estimated useful life of the machine is 4 years and the estimated
On January 1, 2017, company purchased a molding machine at 67.000 TL. The estimated useful life of the machine is 4 years and the estimated salvage value is 2.000 TL. At the beginning of the 3rd year a major renovation is maintained on the machine. The cost of the renovation is 34.000 TL. Because of the renovation estimated useful life extended to 6 years in total and the salvage value increased to 2.500 TL. Assume the company uses double declining method prepare the depreciation schedule for 6 years showing depreciation expense, accumulated depreciation and the book value of the machine, for each year.
Prepare the depreciation schedule if the company uses double declining balance method.
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