(DEPRECIATION SCHEDULE E)

E.Office furniture for a set of executive suites costs $12,000.00 and should be replaced after 5-years. The salvage value is $3,000. Prepare a depreciation schedule using a double-declining balance rate for the system. It should include the following for each year:
1.The year's depreciation
2.The accumulated depreciation
3.The year's end-of-book value
Due: 11/01/2007
Thank you so much.......

To prepare a depreciation schedule using the double-declining balance method, you need to follow these steps:

Step 1: Determine the depreciation rate
To use the double-declining balance method, you start with a depreciation rate that is double the straight-line depreciation rate. Since the furniture is expected to be replaced after 5 years, the straight-line depreciation rate would be 1/5 or 20%. Therefore, the double-declining balance rate is 2 times the straight-line rate, which is 40%.

Step 2: Calculate the annual depreciation expense
To calculate the annual depreciation expense, you multiply the depreciation rate by the beginning book value of the asset for the year. The beginning book value (BV) for the first year is the initial cost of $12,000.00.

Year 1 depreciation expense = Depreciation rate * Beginning book value
Year 1 depreciation expense = 40% * $12,000.00
Year 1 depreciation expense = $4,800.00

Step 3: Calculate the accumulated depreciation
To calculate the accumulated depreciation, you add the depreciation expense for the current year to the accumulated depreciation from the previous year.

Year 1 accumulated depreciation = Year 1 depreciation expense
Year 1 accumulated depreciation = $4,800.00

Step 4: Calculate the end-of-year book value
To calculate the end-of-year book value, you subtract the accumulated depreciation from the beginning book value.

Year 1 end-of-year book value = Beginning book value - Accumulated depreciation
Year 1 end-of-year book value = $12,000.00 - $4,800.00
Year 1 end-of-year book value = $7,200.00

The depreciation schedule for the furniture using the double-declining balance method for the first year would be as follows:

Year 1:
- Depreciation Expense: $4,800.00
- Accumulated Depreciation: $4,800.00
- End-of-Year Book Value: $7,200.00

To complete the rest of the depreciation schedule for the remaining years (2-5), you repeat the steps using the updated beginning book value from the previous year.

I hope this helps!