Friday

August 1, 2014

August 1, 2014

Posted by **Kara** on Thursday, July 9, 2009 at 12:34am.

- Math -
**drwls**, Thursday, July 9, 2009 at 9:11amThe depreciation method to be used is explained here:

http://beginnersinvest.about.com/cs/investinglessons/l/bldbldeclinebal.htm

Using straight-line depreciation, the depreciation percentage each year would be 1/8 or 12.5%. With the double-declining-balance method (ddbm), it is 25% per year until the annual depreciation allowance is less than it would be with the straight-line method. The first-year depreciation allowance withthe d.d.b.m. is $11,000, and the book value at the end of that year is $39,000. For the second year, the depreciation allowance is (1/4)(39,000-6000) = 8250, and the book value at the end of that year is 39,000 - 8250 = 30,750. If straight-line depreciation had been used, the depreciation allowance each year would be 44,000*(1/8) = 5500. Since that is less than the double-declining balance value, the double declining balance method can be used for the second year.

- Math -
**Anonymous**, Monday, January 9, 2012 at 12:47am30

**Related Questions**

Math - P Inc.purchased a $30,000 asset with a salvage value of$1,200 and an ...

Math - An asset is purchased for$50,000.It has an estimated useful life of 12 ...

math - Parker Inc. purchased a $30,000 asset with a salvage value of $1,200 and ...

Math - The Tao Inc. purchased an asset for $170,000 with a salvage value of $8,...

Math - The Tao Inc. purchased an asset for $170,000 with a salvage value of $8,...

ashworth - The Tao Inc. purchased an asset for $170,000 with a salvage value of...

accounting - How do i calculate this problem. An asset was purchased for $150,...

accounting - 1-On May 1, 2012, Pinkley Company sells office furniture for $150,...

Business Math - The Tao Inc. purchased an asset for $170,000 with a salvage ...

Straight-line Depreciation - Please how do i calculate this problem. An asset ...