In: Accounting
[11] A piece of equipment was acquired for a cost of $400,000. It had an estimated useful life of 5 | |||||||
years. The estimated salvage value is $40,000. The company controller uses a double declining | |||||||
balance method of accelerated depreciation. The piece of equipment was purchased on Oct. 1, 2014. | |||||||
The company is generating projections for the next few years and has asked you to show him what | |||||||
depreciation expense, accumulated depreciation, and book value of this piece of equipment will be | |||||||
over the life of the asset. SHOW YOUR WORK. You must show the depreciation expense for | |||||||
each year, the accumulated depreciation at the end of each year, and the book value at the end of | |||||||
each year. |