Homework Answers
Depreciation
Derpeciable cost = ( Cost -Residual Value )
Depreciable Value = (400,000-40,000) = $ 360,000
1) Straight line Merhod :
Depreciation for 2019
= 360,000/5 years *3/12 = $ 18,000
2) Units of Activity Method
Depreciation for 2019
= 360,000/50,000*2000 = $ 14,400
3) Double Decline Method
Depreciation for 2019
= 1/5*2*400,000*3/12 = $40,000
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