In: Accounting
a) | Straight Line Method | |||||
Annual Depreciation by SLM = (312000-28000)/5 | ||||||
56,800 | ||||||
Year | Depreciation Expense | Accumulated Depreciation | Carrying Value | |||
312000 | ||||||
1 | 56800 | 56800 | 255200 | |||
2 | 56800 | 113600 | 198400 | |||
3 | 56800 | 170400 | 141600 | |||
4 | 56800 | 227200 | 84800 | |||
5 | 56800 | 284000 | 28000 | |||
b) | Calculation of depreciation by double declining balance method | |||||
Annual Depreciation by SLM = 56800 | ||||||
SLM Depreciation Rate = 56800/(312000-28000) | ||||||
20% | ||||||
Depreciation rate for Double Declining balance method = 20%*2 i.e. 40% | ||||||
Year | Opening Carrying Value | Depreciation Expense | Accumulated Depreciation | Carrying Value | ||
312,000 | ||||||
1 | 312,000 | 124,800 | 124,800 | 187,200 | ||
2 | 187,200 | 74,880 | 74,880 | 112,320 | ||
3 | 112,320 | 44,928 | 44,928 | 67,392 | ||
4 | 67,392 | 26,957 | 26,957 | 40,435 | ||
5 | 40,435 | 12,435 | 12,435 | 28,000 | ||
c) | Unit of Production method | |||||
Depreciation per unit of production = (312000-28000)/1136000 | ||||||
0.25 | per unit | |||||
Year | Units of Production | Depreciation Expense | Accumulated Depreciation | Carrying Value | ||
272000 | ||||||
1 | 245600 | 61400 | 61400 | 250600 | ||
2 | 230400 | 57600 | 119000 | 193000 | ||
3 | 227000 | 56750 | 175750 | 136250 | ||
4 | 232600 | 58150 | 233900 | 78100 | ||
5 | 200400 | 50100 | 284000 | 28000 | ||
Straight Line | Units of Production | Double-Diminishing | ||||
Total Depreciation Expense | 284,000 | 284,000 | 284,000 | |||
Accumulated Depreciation | 284,000 | 284,000 | 284,000 | |||