dep-example1a[1] - Depreciation Example 1a Cost $ 110,000...

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Depreciation Example 1a Cost 110,000 $ Salvage value 20,000 $ Useful life 5 years Purchase date March 1, 2006 Straight line depreciation Year No. of Months Depreciation 2006 10 15,000 $ =($110,000 - $20,000) x 1/5 x 10/12 2007 12 18,000 $ =($110,000 - $20,000) x 1/5 x 12/12 2008 12 18,000 $ =($110,000 - $20,000) x 1/5 x 12/12 2009 12 18,000 $ =($110,000 - $20,000) x 1/5 x 12/12 2010 12 18,000 $ =($110,000 - $20,000) x 1/5 x 12/12 2011 2 3,000 $ =($110,000 - $20,000) x 1/5 x 2/12 Total 60 90,000 $ 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 110,000 $ 40% 10 36,667 $ 36,667 $ 73,333 $ 2007 73,333 $ 40% 12 29,333 $ 66,000 $ 44,000 $ 2008 44,000 $ 40% 12 17,600 $ 83,600 $ 26,400 $ 2009 26,400 $ 40% 12 6,400 $ 90,000 $ 20,000 $ 2010 26,400 $ 40% 12 - $ 90,000 $ 20,000 $ 2011 20,000 $ 40% 2 - $ 90,000 $ 20,000 $ Total 60 90,000
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