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ABC Ltd. bought an asset at the start of an accounting year costing $100,000. Asset has...

ABC Ltd. bought an asset at the start of an accounting year costing $100,000. Asset has an expected life of 10years with a residual value of $4,000. Show the schedule of depreciation expense in each year using double declining balance method (200%) with switchover to straight line method.

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Year Beginning BV Depreciation % Depreciation Accumulated Depreciation Ending BV
1 $        1,00,000 20.00 $            20,000 $          20,000 $          80,000
2 $           80,000 20.00 $            16,000 $          36,000 $          64,000
3 $           64,000 20.00 $            12,800 $          48,800 $          51,200
4 $           51,200 20.00 $            10,240 $          59,040 $          40,960
5 $           40,960 20.00 $              8,192 $          67,232 $          32,768
6 $           32,768 20.00 $              6,554 $          73,786 $          26,214
7 $           26,214 21.19 $              5,554 $          79,340 $          20,660
8 $           20,660 21.19 $              5,554 $          84,894 $          15,106
9 $           15,106 21.19 $              5,554 $          90,448 $            9,552
10 $              9,552 21.19 $              5,552 $          96,000 $            4,000
CALCULATIONS:
Deprecition % = (100%/10)*2 = 20%

jeff jeffy answered 1 year ago
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