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Answer for 12

Answer for 12
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Answer #1

Answer for 12

In double declining balance method of depreciation 200% of string line rate is to be used

Straight line rate = 100%/5years = 20% therefore for double declining balance we will use 40% rate of beginning book value every year

Year1 Year 2 year 3 Year 4
Beginning book value 55000 33000 19800 11880
Depreciation @ 40% 22000 13200 7920 4752
End book value 33000 19800 11880 7128

Therefore the ending book value for year 4 is 7128

Option E is correct answer

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