On Jan 2, 2008 X Company purchased Machine for Sixty Thousand (60,0-) Cash, w/ est. Useful life of 6 years and Salvage value Two Thousand (2,0-).

Solution:

Cost----------------------------------------------------------------------------------------------------      60,000.00

Less Accumulated depreciations:

        Depreciation for2008 (60,000x331/3%) ---------------------------------20,000

        Depreciation for2009 (60,000-20,000) x331/3%)  -------------------13,333

        Depreciation for2000 (60,000-33,333.) x331/3% ---------- -----------8,889

        Depreciation for first half of2010 (60,000-42,222)x331/3%x1/2----2,963

                               TOTAL          ----------------------------------------------------------------------45,185

Book Value         ----------------------------------------------------------------------------------------14,815           

Book vale after three and half year will be23305 as per double declining method of depreciation at the rate of32%.