Finanical Management

Unit 4: Module 4 - M4 Assignment 3

P 9 – 28 A (page 517)

Straight- Line Depreciation = ( $74,700 – $14,700) x 1/6 x 12/12

= 7,200 per year

Depreciation Value = $60,000

Straight- Line Depreciation |

Depreciation for the Year |

Date | Asset Cost | Depreciation Rate | Depreciation Cost | Depreciation Expense | Accumulate Depreciation | Book Value |

1-1-2010 | $60,000 | | | | | |

2010 | | 0.20 | 60,000 | 7200 | 7200 | 52,800 |

2011 | | 0.20 | 60,000 | 7200 | 14,400 | 45,600 |

2012 | | 0.20 | 60,000 | 7200 | 21,600 | 38,400 |

2013 | | 0.20 | 60,000 | 7200 | 28,800 | 31,200 |

2014 | | 0.20 | 60,000 | 7200 | 36,000 | 24,000 |

2015 | | 0.20 | 60,000 | 7200 | 43,000 | 16,800 |

Units-of – Production Depreciation = ( $74,700 – $14,700) x 1/6 x 12/12 = 7,200 per yearDepreciation Value = $60,000 Units – of – Production Depreciation |

Depreciation for the Year |

Date | Asset Cost | Depreciation Rate | Depreciation Cost | Depreciation Expense | Accumulate Depreciation | Book Value |

1-1-2010 | $60,000 | | | | | 60,000 |

2010 | | 0.40 | 20,000 | 8,000 | 8,000 | 52,000 |

2011 | | 0.40 | 30,000 | 12,000 | 12,000 | 40,000 |

2012 | | 0.40 | 25,000 | 10,000 | 10,000 | 30,000 |

2013 | | 0.40 | 15,000 | 6,000 | 6,000 | 24,000 |

2014 | | 0.40 | 10,000 | 4,000 | 4,000 | 20,000 |

2015 | | 0.40 | 10,000 | 4,000 | 4,000 | 16,000 |

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Double – Declining Balance

Double – Declining Balance Depreciation |

Depreciation for the Year |

Date | Asset Cost | Depreciation Rate | Depreciation Cost | Depreciation Expense | Accumulate Depreciation | Book Value |

1-1-2010 | $60,000 | | | | | 60,000 |

2010 | | 0.40 | 60,000 | 24,000 | 24,000 | 36,000 |

2011 | | 0.40 | 36,000 | 14,400 | 14,400 | 21,600 |

2012 | | 0.40 | 21,600 | 8,600 | 8,600 | 12,960 |

2013 | | 0.40 | 12,960 | 5,184 | 5,184 |...