Respuesta :
Answer: $130,000
$205,600
$50,000
Explanation:
Depreciation expense using the straight line depreciation method = (Original cost of asset - Salvage value) / useful life
Depreciation expense = ( $400,000 - $40,000) / 4 = $90,000
Net book value for year 1 =$400,000 - $90,000 = $310,000
Net book value for year two = $310,000 - $90,000 = $220,000
Net book value for year 3 = $220,000 - $90,000 = $130,000
Deprecation expense using the unit of production method = [ (Original cost of asset - Salvage value) / total estimated productive capacity] × actual productive use of asset
($400,000 - $40,000) / 20,000 = $18
Depreciation expense for year 1 = $18 × 3000 =$54,000
Net book value for year 1 = $400,000 - $54,000 = $346,000
Depreciation expense for year 2 = $18 × 1800 = $32,400
Net book value for year two = $346,000 - $32,400 = $313,600
Depreciation expense for year 3 = $18 × 6000 = $108,000
Net book value for year three = $313,600 - $108,000 = $205,600
In the double declining method = 2 × (1/number of years ) =2 × (1÷4) = 0.5
Deprecation expense using the double declining method = 0.5 × net book value
Depreciation expense for year 1 = 0.5 × $400,000=$200,000
Net book value for year 1 = $400,000 -$200,000=$200,000
Depreciation expense for year two = $200,000 × 0.5 = $100,000
Net book value for year two = $200,000 - $100,000 = $100,000
Depreciation expense for year 3 = $100,000 × 0.5 =$50,000
Net book value for year three = $100,000 - $50,000 = $50,000
a) The machine's book value at the end of year 3, using the straight-line method, is $130,000.
b) The machine's book value at the end of year 3, using the units-of-production method, is $94,000.
b) The machine's book value at the end of year 3, using the double-declining-balance method, is $50,000.
Data and Calculations:
Cost of machine = $400,000
Estimated residual value = $40,000
Depreciable amount = $360,000 ($400,000 - $40,000)
Estimated useful life = 4 years
1. Straight-line method:
Annual depreciation expense = $90,000 ($360,000/4)
Accumulated depreciation after three years = $270,000 ($90,000 x 3)
The book value after three years = $130,000 ($400,000 - $270,000)
2. Units-of-production depreciation:
Estimated useful life = 20,000 machine hours
Total hours that the machine ran in three years = 17,000 hours
Depreciation expense per machine hour = $18 ($360,000/20,00)
Accumulated depreciation = $306,000 ($18 x 17,000)
The book value after three years = $94,000 ($400,000 - $306,000)
3. Double-declining-balance depreciation:
Annual depreciation rate = 50% (100/4 x 2)
First-year depreciation expense = $200,000 ($400,000 x 50%)
Second-year depreciation expense = $100,000 ($200,000 x 50%)
Third-year depreciation expense = $50,000 ($100,000 x 50%)
Accumulated depreciation = $350,000
The book value after three years = $50,000 ($400,000 - $350,000)
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