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- (16 points) Consider the purchase of a new combine. The specific information is:
Purchase price = $750,000.00 Purchase date = Jan 1, 2019
Useful life = 5 years Salvage value = $100,000.00
Complete each depreciation table.
Note: each highlighted box is worth 1 point for a total of 16 points possible
- Fill in the table using the straight-line method
| Year | Remaining value at beginning of year | Depreciation | Remaining value at end of year |
| 2019 | | | |
| 2020 | | | |
| 2021 | | | |
| 2022 | | | |
| 2023 | | | |
AREA TO SHOW WORK MUST SHOW WORK FOR CREDIT:
- Fill in the table using the straight-line method if the purchase date was October 1, 2019
| Year | Remaining value at beginning of year | Depreciation | Remaining value at end of year |
| 2019- Oct 1 to Dec 31 | $750,000 | $32,500 | $717,500 |
| 2020 | $717,500 | $130,000 | $587,500 |
| 2021 | $587,500 | $130,000 | $457,500 |
| 2022 | $457,500 | $130,000 | $327,500 |
| 2023 | $327,500 | $130,000 | $197,500 |
| 2024- Jan 1 to Sept 30 | $197,500 | $97,500 | $100,000 |
AREA TO SHOW WORK MUST SHOW WORK FOR CREDIT:
Depreciation= (750,000 100,000)/5 = $130,000
- Fill in the table using the 200% Declining Balance method, purchase date was Jan. 1, 2019
What is the deprecation rate?
| Year | Remaining value at beginning of year | Depreciation | Remaining value at end of year |
| 2019 | | | |
| 2020 | | | |
| 2021 | | | |
| 2022 | | | |
| 2023 | | | |
AREA TO SHOW YOUR WORK MUST SHOW WORK FOR CREDIT:
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