Question

On June 1, 20X1, Apache Corp. purchases for $101,700 a machine for which it estimates a life of 4 years and a scrap value of $4,500.

Apache uses double-declining balance depreciation. Complete the table below.

Year-beginning Depreciation Accumulated Year-end Year book value expense depreciation book value 20X1 20X2 20X3 20X4 20X5

Answer 1

		Apache Corp.
	Double Declining
	Cost of Machine=(A)	$                            1,01,700.00
	Residual Value=(B)	$                                  4,500.00
	Useful life=(C )	4
	Double Declining Rate=(1/4)*200%	50%
	Computation			End of Year
	(A)	(B)	(A)*(B)
Years	Book Value at the beginning of the year*	Depreciation rate=	Annual Depreciation Expense	Accumulated Depreciation	Book Value at the end of the year	Accumulated Dep(working)	Book value(working)
20X1	$                                                        1,01,700.00	50%	$                                         29,662.50	$                               29,662.50	$              72,037.50	$29662.50	($101700-$29662.50)
20X2	$                                                            72,037.50	50%	$                                         36,018.75	$                               36,018.75	$              36,018.75	($29662.50+$36018.75)	($72037.50-$36018.75)
20X3	$                                                            36,018.75	50%	$                                         18,009.38	$                               54,028.13	$              18,009.38	($36018.75+$18009.38)	($36018.75-$18009.38)
20X4	$                                                            18,009.38	50%	$                                           9,004.69	$                               63,032.81	$                 9,004.69	($54028.13+$9004.69)	($18009.38-$9004.69)
20X5	$                                                              9,004.69	50%	$                                           4,504.69	$                               67,537.50	$                 4,500.00	($63032.81+$4504.69)	($9004.69-$4504.69)
	Depreciation
20X1	($101700*50%*7/12)