dep-example2a[1]

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

This preview shows page 1. Sign up to view the full content.

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
This is the end of the preview. Sign up to access the rest of the document.

## 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.

Ask a homework question - tutors are online