A building acquired at the beginning of the year at a cost of $1,630,000 has an estimated residual value of $340,000 and an estimated useful life of 10 years. Determine the following. a. The depreciable cost $fill in the blank 1 b. The straight-line rate fill in the blank 2 % c. The annual straight-line depreciation $fill in the blank 3 A truck acquired at a cost of $230,000 has an estimated residual value of $13,000, has an estimated useful life of 31,000 miles, and was driven 2,500 miles during the year. Determine the following. If required, round your answer for the depreciation rate to two decimal places. a. The depreciable cost $fill in the blank 1 b. The depreciation rate $fill in the blank 2 per mile c. The units-of-activity depreciation for the year $fill in the blank 3 A building acquired at the beginning of the year at a cost of $1,193,000 has an estimated residual value of $220,000 and an estimated useful life of 40 years. Determine the following. a. The double-declining-balance rate fill in the blank 1 % b. The double-declining-balance depreciation for the first year $fill in the blank 2
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
A building acquired at the beginning of the year at a cost of $1,630,000 has an estimated residual value of $340,000 and an estimated useful life of 10 years. Determine the following.
| a. | The |
$fill in the blank 1 | |
| b. | The straight-line rate | fill in the blank 2 | % |
| c. | The annual straight-line depreciation | $fill in the blank 3 |
A truck acquired at a cost of $230,000 has an estimated residual value of $13,000, has an estimated useful life of 31,000 miles, and was driven 2,500 miles during the year. Determine the following. If required, round your answer for the depreciation rate to two decimal places.
| a. | The depreciable cost | $fill in the blank 1 | |
| b. | The depreciation rate | $fill in the blank 2 | per mile |
| c. | The units-of-activity depreciation for the year | $fill in the blank 3 |
A building acquired at the beginning of the year at a cost of $1,193,000 has an estimated residual value of $220,000 and an estimated useful life of 40 years. Determine the following.
| a. | The double-declining-balance rate | fill in the blank 1 | % |
| b. | The double-declining-balance depreciation for the first year | $fill in the blank 2 |
Equipment with a cost of $304,000 has an estimated residual value of $41,600, has an estimated useful life of 16 years, and is depreciated by the straight-line method.
a. Determine the amount of the annual depreciation.
$fill in the blank 1
b. Determine the book value at the end of the tenth year of use.
$fill in the blank 2
c. Assuming that at the start of the eleventh year the remaining life is estimated to be eight years and the residual value is estimated to be $16,800, determine the depreciation expense for each of the remaining eight years.
$fill in the blank 3
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