Unit 9 Lab declining balance method
.pdf
School
Purdue Global University**We aren't endorsed by this school
Course
MM 225
Subject
Accounting
Date
Dec 20, 2024
Pages
1
Uploaded by DrBravery15788
Student: Alex HigginsDate: 12/17/24Instructor: Paul JonesCourse: MM255 Business Math and StatisticalMeasuresAssignment: Unit 9 Lab HomeworkA printing press that costs is depreciated using the 1.5 declining-balance method. The scrap value of the press is estimated to be and the press has an expected life of 20 years. Prepare the first year of a depreciation schedule.$289,800$9,0001.5 declining-balance rate can be found by the following formula.1.5 declining-balance rate =1.51years of expected lifeRewrite the formula above substituting 20 for years of expected life.1.5 declining-balance rate =1.5120Calculate the right side of the equation above.1.5 declining-balance rate0.075=The first year depreciation can be found by the following formula.First year depreciationtotal cost1.5 declining-balance rate=Find year 1 depreciation using the formula above.Year 1 depreciation$= $289,800(0.075) =21,735Accumulated depreciation is the year's depreciation plus the sum of all previous years' depreciation. Since we consider the first year, then accumulated depreciation is $21,735.The first end-of-year book value can be found by the following formula.first end-of-year book valuetotal cost first year's depreciation=−Find the first end-of-year book value using the formula above.first end-of-year book value$$$=289,800 −21,735 =268,065Fill in the first row of the table.YearAnnual depreciationAccumulated depreciationEnd-of-year book value1$21,735$21,735$268,065
