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 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 Depreciation Expense End of Period Accumulated Depreciation Book Value
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter18: Accounting For Long-term Assets
Section: Chapter Questions
Problem 3CE: A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years....
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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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Transcribed Image Text: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
Period Book
Value
Depreciation Depreciation
Rate (%)
Expense
End of Period
Accumulated
Depreciation
Book Value
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