Financial Act Chpt 9 Notes

# calculate by cost salvage valuetotal estimated

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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 cost! Calculate by: (Cost-Accumulated Depreciation) x Twice the straight line rate 54 itd wuits pu r criseu wriunet cia. juieii qu.pii.eti s&amp;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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## This note was uploaded on 01/23/2014 for the course ACG 2021 taught by Professor Linkovich during the Spring '08 term at University of South Florida - Tampa.

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