Question

Ramirez company installs and computerized manufacturing machine in his factory at the beginning of the year at a cost of $45300 that machines useable ivories estimated at 10 years or 403000 units a product with a $5000 salvage value during its 2nd year the machine produces 34300 units of product determine the machine 2nd year depreciation using the double declining balance method

Answer 1

Double - Declining Balance Methodl Date 1st year particulars To Cash Ale Machinery Ale Amount (8) Date particulars Amount (1) (45,300 | 1st year by By depreciation 9,060 as e CNOTE] and of By balance of 36,240 1st year 45,300 45,300 2nd year, To balance bld 36,240 end of By lepsmaton e 7248 [2x$36,240x 10) end of By balance ad 28,992 2nd year I 36,240 36,240 мате • Schraight line Depsoication sate = "/0*100 = 10%. • Double - delining Depreciation formula = 2 x Cost of the Dsset x Depreciation sate - 2x $45,300 x 10). = $ 9,060 Conclension 2nd year depreciation of machinery but she using double-declining balance method is $7,248