Accumulated Depreciation,End of Year & Book Value,End of Year for year 5? Depreciation by...
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Accounting
Accumulated Depreciation,End of Year & Book Value,End of Year
for year 5?
Depreciation by two methods; sale of fixed asset New tire retreading equipment, acquired at a cost of $625,000 on September 1 at the beginning of a fiscal year, has an estimated useful life of 5 years and an estimated residual value of $53,700. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. On the basis of the data presented to the manager, the double-declining-balance method was selected. In the first week of the fifth year, on September 6 , the equipment was sold for $91,500. Required: 1. Determine the annual depreciation expense for each of the estimated 4 years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by (a) the straight-line method and (b) the double-declining-balance method. a. Straight-line method
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