 |
|
|
 |
New Member
|
|
Dec 16, 2010, 09:37 PM
|
|
Accounting Depreciation Question
On September 5th , 2009 Apollo purchased equipment costing $40,000 with an estimated life of 6 years and an estimated salvage value of $4,000. Compute the depreciation expense Apollo would recognize on this equipment in 2009 assuming.
a. Straight-Line depreciation rounding fractional time to the nearest month
b. Declining balance at 200% rate using the half year convention
|
|
 |
Ultra Member
|
|
Dec 16, 2010, 10:55 PM
|
|
Please read this announcement.
https://www.askmehelpdesk.com/financ...-b-u-font.html
If you will try and solve this, showing your work, we will check it and help you with the parts you don't understand. We will also answer specific questions. We won't do the homework for you, though, as you won't learn anything by being given the answer. Thanks.
|
|
 |
New Member
|
|
Dec 17, 2010, 07:26 PM
|
|
Comment on Just Looking's post
Okay... I'll post what I've worked through.
|
|
 |
New Member
|
|
Dec 20, 2010, 03:12 PM
|
|
Comment on Just Looking's post
Here's what I worked through so far.
cost - residual value/ useful life in yrs
40,000 - 4,000 / 6 years = 36,000 / 6
36,000 / 6 = 6,000 per year
4 months (500 a month)
500 x 4 = 2000
|
|
 |
Ultra Member
|
|
Dec 20, 2010, 03:17 PM
|
|
Looks good. Your $6,000 * 4/12 (number of months / 12 months) = $2,000
For double declining balance the formula is your cost of $40,000 * 1/6 (this is your years of depreciaton in a fraction) * 200% * 6/12 (number of months / 12 months).
Remember your book value of your asset cannot go below your salvage value. On homework questions in the last year of depreciation the depreciation will have to be adjusted to get the right amount of depreciation expense for the final year of depreciation.
|
|
Question Tools |
Search this Question |
|
|
Add your answer here.
Check out some similar questions!
Accumulated Depreciation Question
[ 1 Answers ]
Can anyone help me please? I have the following questions:
If I sell a Business Vehicle, that has not fully depreciated, what journal entry/entries do I need to make to get it off my books? For example, if the Vehicle cost me $25,000, A/D was $18,000, and I sold it for $10,000? I'm new at...
View more questions
Search
|