Question

11-19 The depreciation schedule for a machine has been arrived at by several methods. The estimated salvage value of the equipment at the end of its 6-year use- ful life is $600. Identify the resulting depreciation schedules. Year A B C D 1 2 3 4 5 6 $8000 0 0 0 0 0 $2000 1500 1125 844 633 475 $1600 2560 1536 922 922 460 $1233 1233 1233 1233 1233 1233

Answer 1

. At situation (A) Machine is react, eligitle for 100% bonus depreciation at the time of purchase that a 1st year first year total machinery value taken as depreciation and for remaining uset life of years is taken as Nil depreciation So machinery cost – $8000 Situation (13) ith yeas deprecation = $2000 dep rate - 2000 t year dep = (20 - 2000) x 251. - 1500 3rd year = 6500x25%. = 1125 so At situation ③ Diminishing balance method is used 2000 *w = 24 situation @ method cused Double Declining balance situation ® Dep $ 8000-600 =P & $1233 brea It is a straight line method.