Daniels company purchased a machine for $100000. Useful life 5 years(book and tax) no salvage value....

Daniels company purchased a machine for $100000. Useful life 5 years(book and tax) no salvage value. Record depreciation for 5 yaers using straight line, double declining balance, MACRS

Expert Solution

SLM
Cost of Machine	100,000.00
Salvage Value	-
Life in years	5.00
Particulars	1	2	3	4	5
Opening Balance	100,000.00	80,000.00	60,000.00	40,000.00	20,000.00
Depreciation = (100,000 - 0)/5	20,000.00	20,000.00	20,000.00	20,000.00	20,000.00
Closing balance	80,000.00	60,000.00	40,000.00	20,000.00	-

Double Declining balance
Life	5 Years
Double decling balance method rate = 20%*2	40%
Particulars	1	2	3	4	5
Opening Balance	100,000.00	60,000.00	36,000.00	21,600.00	12,960.00
Depreciation at 40%	40,000.00	24,000.00	14,400.00	8,640.00	5,184.00
Closing balance	60,000.00	36,000.00	21,600.00	12,960.00	7,776.00
MACRS Depreciation
Year	MACRS Rate	Depreciation
1.00	20.00%	20,000.00
2.00	32.00%	32,000.00
3.00	19.20%	19,200.00
4.00	11.52%	11,520.00
5.00	11.52%	11,520.00

ekkarill92 answered 2 years ago

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