# Accting II - Question Student Answer(A Straight Line...

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Unformatted text preview: . Question : Student Answer: (A) Straight Line Depreciation Cost ……………………….............\$460,000 Salvage Value ………………………..\$60,000 Depreciable Cost ……………………\$400,000 Depreciation each year………….…\$ 50,000 (B) Double-Declining Method Straight Line %..............................20.00% Double Declining % …………………..40.00% Details Year 1 Year 2 Year 3 Year 4 Book Value 1st January 460,000 276,000 165,600 99,360 Double Declining Depreciation 184,000 110,400 66,240 39,360 Book Value 31st December 276,000 165,600 99,360 60,000 (C) Units of Production Method Units .........................5000 Depreciation per unit.....80 Year1 Year2 Year3 Year4 Depreciation for each year 96,000 88,000 72,000 104,000 Year5 40,000 Instructor Explanation: a. Year 1: (\$460,000 - \$60,000) / 5 years = \$80,000 per year Year 2: Same as Year 1 Year 3: Same as Year 1 Year 4: Same as Year 1 b. Year 1: \$460,000 book value x (2 / 5 years) = \$ \$184,000 Year 2: \$276,000 book value (\$460,000 cost - \$184,000 year 1 depreciation) x (2 /5 years) = \$110,400 Year 3: \$165,600 book value (\$460,000 cost - \$184,000 year 1...
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Accting II - Question Student Answer(A Straight Line...

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