Ask Question
BusinessBusiness
10 April, 06:00

Depreciation calculation methods-partial year Freedom Co. purchased a new machine on July 2, 2013, at a total installed cost of $44,000. The machine has an estimated life of five years and an estimated salvage value of $6,000.

a. Calculate the depreciation expense for each year of the asset's life using:

1. Straight-line depreciation.

2. Double-declining-balance depreciation.

3. 150% declining-balance depreciation.

b. How much depreciation expense should be recorded by Freedom Co. for its fiscal year ended December 31, 2013, under each of the three methods? (Note: The machine will have been used for one-half of its first year of life.)

c. Calculate the accumulated depreciation and net book value of the machine at December 31, 2014, under each of the three methods.

+2
Answers (1)
  1. 10 April, 08:03
    0
    a.

    1. $7,600

    2. $17,600

    3. $13,200

    b.

    1. $3,800

    2. $8,800

    3. $6,600

    c.

    1. $15200

    2. $35,200

    3. $26,400

    Explanation:

    1. Straight Line Depreciation Method

    $44,000 - $6,000 / 5 years

    = $7,600.

    2. Double declining - balance Method

    100% / 5 years = 20%

    20% * 2 = 40%

    $44,000 * 40% = $17,600

    3. 150% declining - balance Method

    150% / 5 years = 30%

    $44,000 * 30% = $13,200

    b. Because this is for 6 months only the depreciation expense calculated will be divided into 2

    1. $7,600 / 2 = $3,800

    2. $17,600 / 2 = $8,800

    3. $13,200 / 2 = $6,600

    c.

    1. $7,600 * 2 = $15200

    2. $17,600 * 2 = $35,200

    3. $13,200 * 2 = $26,400
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Depreciation calculation methods-partial year Freedom Co. purchased a new machine on July 2, 2013, at a total installed cost of $44,000. ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Your nominal wage increases from $12 per hour to $13 per hour. At the same time, the price level increases from 140 to 147. As a result, A. The number of dollars you receive increases and the purchasing power of the dollars you receive increases. B.
Answers (1)
Sheridan Company purchased $1750000 of 10% bonds of Scott Company on January 1, 2021, paying $1650375. The bonds mature January 1, 2031; interest is payable each July 1 and January 1. The discount of $99625 provides an effective yield of 11%.
Answers (1)
Demelza purchased her favorite perfume three months ago, J'adore by Dior, for $75. She logs online to purchase one for her friends birthday and it is now $100. What is the percentage change in the perfume price? Select one:a. 75%b. 50%c. 25%d. 33%
Answers (1)
Foreign households and businesses buy from our domestic product and factor markets. From our perspective this describes * A.) exchange rate B.) imports C.) trading bloc D.) import quota E.) exports
Answers (1)
An account becomes uncollectible a. at the end of the fiscal year b. There is no general rule for when an account becomes uncollectible. c. when a discount is availed on notes receivable d.
Answers (1)
New Questions in Business
What term perfectly describes the a slowdown in the rate of increase in the consumer price index?
Answers (1)
Approximately what percentage of the u. s. public debt is held by foreign individuals and institutions (2015) ?
Answers (1)
Meeting others through volunteer work is the most common way people expand their network.
Answers (1)
Explain the natural and necessary shifts of resources in a market economy.
Answers (1)
In a pure market economy, the government controls most actions. A. True False
Answers (2)
Home » Business » Depreciation calculation methods-partial year Freedom Co. purchased a new machine on July 2, 2013, at a total installed cost of $44,000. The machine has an estimated life of five years and an estimated salvage value of $6,000. a.
Sign Up Forgot Password?