Dep
2
Useful life of assets = $75000 / $7,500 = 10 years Years assets have been depreciated = 30,000 / 7,500 = 4 years The assets have been depreciated for four years. So the assets were purchased at the beginning of 2010. 100% / 10 yrs = 10% (annual straight-line depreciation rate) 10% x 2 = 20% (annual double-declining depreciation rate. 2010 Beginning Book Value 75000 Depreciation Expense 75000 x 20% = $15,000 Accumulated Depreciation 15,000 Ending Book Value 75000 - 15000 = $60,000 2011 Beginning Book Value $60,000 Depreciation Expense 60,000 x 20% = $12000 Accumulated Depreciation 15,000 + 12,000 = $27,000 Ending Book Value 75000 - 27000 = $48,000 2012 Beginning Book Value $48,000 Depreciation Expense 48,000 x 20% = $9,600 Accumulated Depreciation 27,000 + 9,600 = $36,600 Ending Book Value 75,000 - 36,600 = $38,400 2013 Beginning Net Asset Value
-
Upload
david-david -
Category
Documents
-
view
217 -
download
2
description
kjkkjkj
Transcript of Dep
Useful life of assets = $75000 / $7,500 = 10 years Years assets have been depreciated = 30,000 / 7,500 = 4 years
The assets have been depreciated for four years. So the assets were purchased at the beginning of 2010.
100% / 10 yrs = 10% (annual straight-line depreciation rate) 10% x 2 = 20% (annual double-declining depreciation rate.
2010 Beginning Book Value 75000 Depreciation Expense 75000 x 20% = $15,000 Accumulated Depreciation 15,000 Ending Book Value 75000 - 15000 = $60,000
2011 Beginning Book Value $60,000 Depreciation Expense 60,000 x 20% = $12000 Accumulated Depreciation 15,000 + 12,000 = $27,000 Ending Book Value 75000 - 27000 = $48,000
2012 Beginning Book Value $48,000 Depreciation Expense 48,000 x 20% = $9,600 Accumulated Depreciation 27,000 + 9,600 = $36,600 Ending Book Value 75,000 - 36,600 = $38,400
2013 Beginning Net Asset Value $38,400 Depreciation Expense 38,400 x 20% = $7,680 Accumulated Depreciation 36,600 + 7,680 = $44,280 Ending Net Asset Value 75,000 – 44,280 = $30,720
