In: Finance
Complete the following depreciation table using the declining-balance method (twice straight-line rate).
Auto: $26,000 Estimated life: 10 years Residual value: $600
End of Cost of Acc. depr. Book value Annual Depr. Acc. depr. Book value
Year asset B.O.Y B.O.Y. Expense E.O.Y. E.O.Y.
1
2
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7
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Double Declining Balance Method | ||||||
Cost of Assets | $ 26,000.00 | |||||
Salvage Value | $ 600.00 | |||||
Estimated Useful life | 10 | Years | ||||
Depreciation Rate= | (1/useful life)*200% | |||||
Depreciation Rate= | 0.1 | |||||
Double Declining Rate | 0.2 | |||||
Double Declining Rate | 20.00% | |||||
(A)=(C )*20% | (B) | (C ) | ||||
Year | Cost | Depreciation Rate | Depreciation | Accumulated Depreciation | Book Value | |
1 | $ 26,000.00 | 20.00% | $ 5,200.00 | $ 5,200.00 | $ 20,800.00 | |
2 | 20.00% | $ 4,160.00 | $ 9,360.00 | $ 16,640.00 | ||
3 | 20.00% | $ 3,328.00 | $ 12,688.00 | $ 13,312.00 | ||
4 | 20.00% | $ 2,662.40 | $ 15,350.40 | $ 10,649.60 | ||
5 | 20.00% | $ 2,129.92 | $ 17,480.32 | $ 8,519.68 | ||
6 | 20.00% | $ 1,703.94 | $ 19,184.26 | $ 6,815.74 | ||
7 | 20.00% | $ 1,363.15 | $ 20,547.40 | $ 5,452.60 | ||
8 | 20.00% | $ 1,090.52 | $ 21,637.92 | $ 4,362.08 | ||
9 | 20.00% | $ 872.42 | $ 22,510.34 | $ 3,489.66 | ||
10 | 20.00% | $ 697.93 | $ 23,208.27 | $ 2,791.73 | ||