Ask Experts Questions for FREE Help !
Ask
    Laugh123's Avatar
    Laugh123 Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Dec 17, 2008, 09:02 AM
    Determine the depreciation expense for the first two years using the:
    A plant asset acquired on October 1, 2007, at a cost of
    $500,000 has an estimated useful life of 10 years. The salvage value is
    estimated to be $50,000 at the end of the asset's useful life. This
    company is a calendar year company which needs to be considered in the
    calculation of the depreciation expense.

    Instructions:

    Determine the depreciation expense for the first two years using the:
    (a) straight-line method.

    (b) double-declining-balance method.
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
    		  
    #2

    Dec 18, 2008, 07:05 AM

    1. SL is Cost - Salvage value / # of years = Depreciation Expense for one year.

    First year is a partial year so take your Expense per year * 3/12 to get the correct amount

    2. DDB = Book Value *(1/10 *2) or 20%

    1st year is a partial year so take your Cost * 20% * 3/12 = Depreciation Expense for the year.

    2nd year = (Cost - Depreciation Expense 1st year) * 20%
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Accumulated Depreciation and Depreciation Expense [ 10 Answers ]

I have accumulated depreciation and depreciation expense. Do they go together on the Asset side of the balance sheet? My balance sheet is not balancing! The accumulated depreciation is subtracted from the assets on my balance sheet. If I add the depreciation expense to the assets, my balance...

Depreciation Expense and Accumulated Depreciation are classified,respectively, as: [ 3 Answers ]

Depreciation Expense and Accumulated Depreciation are classified,respectively, as: a. expense, contra asset b. asset, contra liability c. revenues, asset d. contra assest, expense I think it is A

Depreciation Expense and Accumulated Depreciation are classified, respectively, as [ 2 Answers ]

Depreciation Expense and Accumulated Depreciation are classified, respectively, as

Depreciation expense [ 2 Answers ]

The amount of depreciation expense for a fixed asset costing $95,000. with an estimated residual value of $5,000. And a useful life of 5 years or 20,000. Operating hours, is $21,375 by the units of production method during a period when the asset was used for 4,500 hours I need help to determine...

Depreciation expense [ 1 Answers ]

Steel is purchased on July 1 of the current fiscal year for $180,000. It is expected to have a useful life of 4 years, or 20,000 operating hours, and a residual value of $15,000. Compute the depreciation for the last six months of the current fiscal year ending December 31 by each of the following...

View more questions Search