A building is acquired on January 1 at a cost of $970,000 with an estimated useful life of eight years and salvage value of $87,300. Compute depreciation expense for the first three years using the double-declining-balance method. Note: Round your answers to the nearest dollar. Annual Period First Year Second Year Third Year Depreciation for the Period Depreciation Rate (%) Beginning of Period Book Value S 970,000 Depreciation Expense End of Period Accumulated Depreciation Book Value
A building is acquired on January 1 at a cost of $970,000 with an estimated useful life of eight years and salvage value of $87,300. Compute depreciation expense for the first three years using the double-declining-balance method. Note: Round your answers to the nearest dollar. Annual Period First Year Second Year Third Year Depreciation for the Period Depreciation Rate (%) Beginning of Period Book Value S 970,000 Depreciation Expense End of Period Accumulated Depreciation Book Value
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets
Section19.5: Declining-balance Method Of Depreciation
Problem 1OYO
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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.
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QS 10-6 (Algo) Double-declining-balance method LO P1
A building is acquired on January 1 at a cost of $970,000 with an estimated useful life of eight years and salvage value of $87,300.
Compute depreciation expense for the first three years using the double-declining-balance method.
Note: Round your answers to the nearest dollar.
Annual Period
First Year
Second Year
Third Year
Depreciation for the Period
Beginning of
Perlod Book
Value
070,000
Depreciation Depreciation
Rate (%)
Expense
End of Period
Accumulated
Depreciation
Book Value
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