Halcrow Yolles purchased equipment for new highway construction in Manitoba, Canada, costing $430,000 Canadian. The estimated salvage at the end of the expected life of 6 years is $50,000. Various acceptable depreciation methods are being studied currently. Determine the depreciation for year 2 using the DDB(Double Declining Balance), 150% DB(Declining Balance), and SL(Straight Line Depreciation) methods. Calculate the depreciation value in a certain year using DDB, 150% DB and Straight Line methods Determine the depreciation by hand. The depreciation using SL method is determined to be $ . The depreciation using DDB method is determined to be $ . The depreciation using 150% DB method is determined to be $. Calculate depreciation values using Excel functions Determine the depreciation using spreadsheet functions.
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.
Halcrow Yolles purchased equipment for new highway construction in Manitoba, Canada, costing $430,000 Canadian. The estimated salvage at the end of the expected life of 6 years is $50,000. Various acceptable
Calculate the depreciation value in a certain year using DDB, 150% DB and Straight Line methods
Determine the depreciation by hand.
The depreciation using SL method is determined to be $ .
The depreciation using DDB method is determined to be $ .
The depreciation using 150% DB method is determined to be $.
Calculate depreciation values using Excel functions
Determine the depreciation using spreadsheet functions.
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 3 images