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Unformatted text preview: ed up (Could be miles, machine hours, etc.)
Calculate by: ((Cost-Salvage Value)/Total Estimated Production)x Actual Production
• Double Declining Balance: An accelerated depreciation method, and considered 2X the straight
line rate! Only depreciation method that DOES NOT consider salvage value when computing
amount for depreciation expense! Note: An asset cannot be depreciated below its original
Calculate by: (Cost-Accumulated Depreciation) x Twice the straight line rate 54 itd wuits pu r criseu wriunet cia. juieii qu.pii.eti s&uv, L.4dKMW, pdl I, LUUKI presses, commercial frosting mixers, etc) on 1/1/09 at a total cost of $20,000. Estimated useful
life is 3 years, with a $2,000 salvage value at the end of that time. Cainas estimates that the
equipment will be used for 10,000 baking hours. For the first year of operations, Cainas had
2,300 baking hours. For the second year, there was 3,000 baking hours. Compute the
depreciation using the three methods acceptable under GAAP.
1. 2. Straight Line: ($20,000 - $2,000)/3 years = $18,000/3...
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