Question

11)

Equipment costing $76,000 was purchased by Taiwan Company at the beginning of the current year. The company will depreciate the equipment by the declining-balance method, but it has not determined whether the rate will be at 150 percent or 200 percent of the straight-line rate. The estimated useful life of the equipment is eight years.

   

Prepare a comparison of the two alternative rates for management for the first two years Taiwan owns the equipment. (Round your answers to the nearest dollar amount. Omit the "$" sign in your response.)

  

	Year 1	Year 2
Double-declining balance depreciation:	$	$
150% declining-balance depreciation:	$	$
(Click to select)Excess of double declining-balance over 150% declining-balance / Excess of 150% declining-balance over double declining-balance	$	$

Answer 1

	Year 1	Year 2
Double-declining balance depreciation:	$19,000.00	$14,250.00
150% declining-balance depreciation:	$14,250.00	$11,578.13
Excess of double declining-balance over 150% declining-balance /	$ 4,750.00	$ 2,671.88

Though utmost care has been taken while answering, but if found anything incorrect, Please get into comments and I shall rectify the same, else please give this a thumbs up. Thanks