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Category > Accounting Posted 25 Sep 2017 My Price 6.00

depreciation calculation

A method that excludes residual value from the base for the depreciation calculation is

a. Straight-line

b. Sum-of-the-years’-digits

c. Double-declining-balance

d. Productive-output

Vorst Corporation’s schedule of depreciable assets at December 31, 2007 was as follows:

Asset

Cost

Accumulated Depreciation

Acquisition Date

Residual Value

A

$100,000

$64,000

2006

$20,000

B

55,000

36,000

2005

10,000

C

70,000

33,600

2005

14,000

$225,000

$133,600

$44,000

Vorst takes a full year’s depreciation expense in the year of an asset’s acquisition, and no depreciation expense in the year of an asset’s disposition. The estimated useful life of each depreciable asset is five years.

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Maurice Tutor
(5)
Status NEW Posted 25 Sep 2017 09:09 PM My Price 6.00

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