Question

do you take purchases computer equipment for 266,000 to use an operating activities for the next four years it estimates equipment salvage value is 27,000 repair a table showing appreciation book value for each of the four years assuming double declining balance depreciation

Answer 1

Cost of equipment = 266,000

Useful life = 4 years

Double declining depreciation rate = 2 x 1/4

= 50%

Year	Beginning year book Value	Depreciation Rate	Annual Depreciation (Beginning Value x Depreciation rate)	Accumulated depreciation ( To be recorded each year)	Year end book value
1	266,000	50%	133,000	133,000	133,000
2	133,000	50%	66,500	199,500	66,500
3	66,500	50%	33,250	232,750	33,250
4	33,250		6,250	239,000	27,000