Question

Homework: Chapter 9 -Continuing Problem Score: 0 of 10 pts CP943 (similar to) Estimated Acquisition Life SL any All
Please answer the monthly depreciation expense and explain it. Thank you

Answer 1

Answers

	Monthly depreciation expense
Computer	$250
Furniture	$35

Calculations

Double declining Method—Computer
A	Cost	$   9,000.00
B	Residual Value	$       900.00
C=A - B	Depreciable base	$   8,100.00
D	Life [in years]	6
E=C/D	Annual SLM depreciation	$   1,350.00
F=E/C	SLM Rate	16.67%
G=F x 2	DDB Rate	33.33%
H=(G x A)/12	Depreciation for march	$ 250.00

Straight line Method – Furniture
A	Cost	$   5,800.00
B	Residual Value	$   1,600.00
C=A - B	Depreciable base	$   4,200.00
D	Life [in years left ]	10
E=C/D	Annual SLM depreciation	$       420.00
F=E/12	Monthly depreciation	$         35.00