ruz Company purchased a computer on June 30, 2020, for $92,400. The computer had a salvage value of $26,400 and useful life of six years. Note: In answering the following questions, do not round until your final answer. Round your final answer to the nearest whole dollar. a. Using the declining-balance depreciation method (200%), determine depreciation expense for 2021. Answer b. Using the declining-balance depreciation method (150%), determine depreciation expense for 2021. Answer c. Using the straight-line depreciation method, determine depreciation expense for 2021.
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.
Computing Partial Period
Cruz Company purchased a computer on June 30, 2020, for $92,400. The computer had a salvage value of $26,400 and useful life of six years.
Note: In answering the following questions, do not round until your final answer. Round your final answer to the nearest whole dollar.
| a. Using the declining-balance depreciation method (200%), determine depreciation expense for 2021. | Answer
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| b. Using the declining-balance depreciation method (150%), determine depreciation expense for 2021. | Answer
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| c. Using the |
Answer
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