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Unformatted text preview: : Double Declining Balance method Equipment Purchased on October 1 of year Cost…. $120,000 Residual 10,000 Life 4 years Full year depreciation $120,000 x (2 x 25%) or 60,000. For prorated year it is 60,000 x 3/12 or $ 15,000. What is depreciation for year two? Full year is ($120,000-60,000) x (2x25%) or 30,000… For year two it is two pieces… balance of year one and first part of year two calculation! (60,000-15,000= 45,000) plus (3/12 of 30,000)= 7,500 totaling 52,500 for year 2...
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This note was uploaded on 02/20/2009 for the course AEM 221 taught by Professor Little,j. during the Fall '08 term at Cornell.
- Fall '08