company purchase a machine costing $100,000 for 5years without salvage value. using straight line method and...

company purchase a machine costing $100,000 for 5years without salvage value. using straight line method and double declining method macrs

Daniels company purchased a machine costing $100,000 for 5 years useful life without salvage value. suing straight line and double declining method macrs

Expert Solution

SLM
Cost of Machine	100,000.00
Salvage Value	-
Life in years	5.00
Particulars	Year 1	Year 2	Year 3	Year 4	Year 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	-

Life	5 Years
Double decling balance method rate = 20%2*	40%
Particulars	Year 1	Year 2	Year 3	Year 4	Year 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	12,960.00
Closing balance	60,000.00	36,000.00	21,600.00	12,960.00	-

ekkarill92 answered 1 year ago

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