ACC 201 week 3 Assignment 2

6-28 determining the effect of depreciation expense on financial statements

Depreciation Calculation:

 

Straight Line:

 

Company A:  ($54,000 - $4,000) ¸ 5 = $10,000 per year

 

Double-Declining Balance:

 

Company B:      

            2012          ($54,000 - $-0- )                         x            (2 x .20)           =        $21,600

            2013          ($54,000 - $21,600)                    x            .4                      =          12,960

            2014          ($54,000 - $34,560)               x   .4           =                7,776

            2015          ($54,000 - $42,336)               x   .4           =                4,666

            2016          ($54,000 - $47,002)               x   .4           =                2,799
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