A4A W14 TH Act 1

Straight-Line

100

Truck Purchased: $35,000 on Jan 1, Year 1.

Useful Life: 4 years

Salvage Value: $1,000

What is the depreciation expense for Dec 31, Year 2?

$8,500

200

Equipment Purchased: $13,000 on Jan 1, Year 1.

Useful Life: 10 years

Salvage Value: $3,000

What is the depreciation expense for Year 1?

$1,000

300

Machinery Purchased: $22,000 on Jan 1, Year 1.

Useful Life: 5 years

Salvage Value: $2,000

What is the depreciation expense for Year 3?

$4,000

400

Machinery Purchased: $10,000 on Jan 1, Year 1.

Useful Life: 5 years

Salvage Value: $1,000

What is the depreciation expense for Year 2?

$1,800

500

Equipment Purchased: $30,000 on Jan 1, Year 1.

Useful Life: 5 years

Salvage Value: $5,000

What is the depreciation expense for the year?

$5,000

Units of Production

100

Sound Equipment Purchased: $65,800 on Jan 1, Year 1

Useful Life: 4 years; 200 concerts

Salvage Value: $2,000

1st Year: 45 concerts performed

What is the depreciation expense for Year 1?

$14,355

200

Equipment Purchased: $13,000 on Jan 1, Year 1

Useful Life: 10 years; 2000 units

Salvage Value: $3,000

1st Year: 160 units produced

What is the depreciation expense for Year 1?

$800

300

Machinery Purchased: $22,000 on Jan 1, Year 1.

Useful Life: 5 years; 1000 units

Salvage Value: $2,000

1st Year: 200 units

2nd Year: 400 units

3rd Year: 300 units

What is the depreciation expense for Year 3?

$6,000

400

Machinery Purchased: $10,000 on Jan 1, Year 1.

Useful Life: 5 years; 36,000 shoes

Salvage Value: $1,000

1st Year: 7000 shoes

2nd Year: 8,000 shoes

What is the depreciation expense for Year 2?

$2,000

500

Equipment Purchased: $30,000 on Jan 1, Year 1.

Useful Life: 5 years; 5,000 papers

Salvage Value: $5,000

1st Year: 1,500 papers

What is the depreciation expense for the year?

$7,500

Double-Declining

100

Machinery Purchased: $10,800,000 on Jan 1, Year 1.

Useful Life: 10 years

Salvage Value: $800,000

What is the depreciation expense for Dec 31, Year 2?

$1,728,000

200

Building Purchased: $830,000 on Jan 1, Year 1.

Useful Life: 8 years

Salvage Value: $75,000

What is the depreciation expense for the first three years?

$207,500

$155,626

$116,719

300

Equipment Purchased: $13,000 on Jan 1, Year 1.

Useful Life: 10 years

Salvage Value: $3,000

What is the depreciation expense for Year 1?

$2,600

400

Machinery Purchased: $22,000 on Jan 1, Year 1.

Useful Life: 5 years

Salvage Value: $2,000

What is the depreciation expense for Year 3?

$3,168

500

Machinery Purchased: $10,000 on Jan 1, Year 1.

Useful Life: 5 years

Salvage Value: $1,000

What is the depreciation expense for Year 2?

$2,400