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eyPLUS Kinmel, Accounting
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Answers are highlighted in Yellow: Solution a) Straight line method (Cost-Salvage value) / Life (yrs) Depreciable Accumulated Net Book Value Depreciation Depreciation Value Calculation Year Acquistion 2016 $ 90,000 85,000 17,000 17,000$ 73, 000 (90000-5000)/5 b) Unit of production method (Cost-Salvage value) / Total expected production x Production of period: Depreciable Accumulated Net Book Year Value Depreciation Depreciation Value Calculation Acquistion $ 90,000 2016 $85,000 2017 $85,000 13,600$13,600 20,400$34,000 76,400 (90000-5000)/(100000) 16000 56,000 (90000-5000)/(100000)*24000 c) Double Decline Method Carrying value x (Straight rate x 2) Carrying Accumulated Year value Depreciation Depreciation Book Value Calculation Acquistion $ 90,000 2016 S 2017|S 2018|$ 90,000|$ 54,000|$ 32,400|$ 36,000|$ 21,600|$ 12,960$ 36,000|$ 57,600|$ 70,560 $ 54,000|(90000)*(20%*2 32,400|(54000)*(20%*2 19,440| (32400)*(20%?

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