Question
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QUESTION 1 An equipment was acquired at a cost of RM300,000. Its estimated useful life is...
QUESTION 1
An equipment was acquired at a cost of RM300,000. Its estimated useful life is five years. It is expected that the salvage value for the equipment is RM50,000. Using the sum of year digit method, calculate and prepare the depreciation expenses and schedule for the five years.
Solutions
Expert Solution
Since the useful life is 5 years, denominator = 5+4+3+2+1 = 15
| Year | Depreciation Base | Remaining Life of Equipment | Depreciation Fraction | Depreciation | Book Value |
| RM | RM | RM | |||
| 1 | 250,000 | 5 | 5/15 | 83,333.33 | 216,667 |
| 2 | 250,000 | 4 | 4/15 | 66,666.67 | 150,000 |
| 3 | 250,000 | 3 | 3/15 | 50,000.00 | 100,000 |
| 4 | 250,000 | 2 | 2/15 | 33,333.33 | 66,667 |
| 5 | 250,000 | 1 | 1/15 | 16,666.67 | 50,000 |
Excel formulas used:
jeff jeffy answered 2 years agoRelated Solutions
QUESTION 1 An equipment was acquired at a cost of RM300,000. Its estimated useful life is...
QUESTION 1
An equipment was acquired at a cost of RM300,000. Its estimated
useful life is five years. It is expected that the salvage value
for the equipment is RM50,000. Using the sum of year digit method,
calculate and prepare the depreciation expenses and schedule for
the five years.
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Required:
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b. What was the book value of the equipment on January 1 of
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$
b. Assume that the equipment was sold on April
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