dep-example2a[1] - Depreciation Example 2a Cost $ 220,000...

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Depreciation Example 2a Cost 220,000 $ Salvage value 38,000 $ Useful life 5 years Purchase date March 1, 2006 Straight line depreciation Year No. of Months Depreciation 2006 10 30,333 $ =($220,000 - $38,000) x 1/5 x 10/12 2007 12 36,400 $ =($220,000 - $38,000) x 1/5 x 12/12 2008 12 36,400 $ =($220,000 - $38,000) x 1/5 x 12/12 2009 12 36,400 $ =($220,000 - $38,000) x 1/5 x 12/12 2010 12 36,400 $ =($220,000 - $38,000) x 1/5 x 12/12 2011 2 6,067 $ =($220,000 - $38,000) x 1/5 x 2/12 Total 60 182,000 $ Double declining balance depreciation Depreciation rate 40% =1/5 x 200% Year Book value at the beginning of year Depreciation rate No. of Months Depreciation expense Accumulated depreciation Book value at year-end 2006 220,000 $ 40% 10 73,333 $ 73,333 $ 146,667 $ 2007 146,667 $ 40% 12 58,667 $ 132,000 $ 88,000 $ 2008 88,000 $ 40% 12 35,200 $ 167,200 $ 52,800 $ 2009 52,800 $ 40% 12 14,800 $ 182,000 $ 38,000 $ 2010 52,800 $ 40% 12 - $ 182,000 $ 38,000 $ 2011 38,000 $ 40% 2 - $ 182,000 $ 38,000 $ Total
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This note was uploaded on 06/22/2009 for the course ACCOUNTING 3 taught by Professor Kaas during the Spring '09 term at CUNY Brooklyn.

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