Communiquez avec les autres et partagez vos connaissances professionnelles

Inscrivez-vous ou connectez-vous pour rejoindre votre communauté professionnelle.

Suivre

A company purchased a POS cash register on January 1 for $5,400. This register has a useful life of 10 years and a salvage value of $400.?

What would be the depreciation expense for the second-year of its useful life using the double-declining-balance method?

a. $500.

b. $800.

c. $864.

d. $1,000.

e. $1,080.

user-image
Question ajoutée par Mohammed Asim Nehal , M Asim Nehal & Co , Chartered Accountants
Date de publication: 2015/07/16
Emmanuel anyedina
par Emmanuel anyedina , Lecturer

the value of the asset at the end of its useful life is $864

BASHAR  MUSTAPHA AHMAD
par BASHAR MUSTAPHA AHMAD , software engineer , MBA

C. $864. THAT IS CURRECT ANSWER 

Utilisateur supprimé
par Utilisateur supprimé

D. 1K.........................................................................

zakaria Mbarki
par zakaria Mbarki , Sr Customer Service and Sales Specialist , Tad-beer

Straight-Line Depreciation Percent = 100% / 10 years = 10% / year

Depreciation Rate = 2 x 10% = 20% / year

Depreciation for a Period = 20% x Book Value at Beginning 

  • Depreciation for Period 1 = 20% x $5,400= $1,080
  • Depreciation for Period 2 = 20% x (Accumulated Depreciation:$5,400- $1,080) =  $864

Hassan  Tanveer
par Hassan Tanveer , Chief Accountant , Boecker Public Health

Answer Is C : 864 doubble declining method .Sure

 

AYTHAM BOTROS
par AYTHAM BOTROS , Financial Manager , Asian Group General Trading Co.

    • Straight-Line Depreciation Percent = 100% / 10 years = 10% / year
    • Depreciation Rate = 2 x 10% = 20% / year
    • Depreciation for a Period = 20% x Book Value at Beginning of the Period
      • Depreciation for Period 1 = 20% x $5,400= $1,080
      • For Periods 2 and greater, depreciation is 20% x ($5,400- Accumulated Depreciation )
      • Depreciation for Period 2 = 20% x ($5,400- $1,080) =  $864

Samir Nimbalkar
par Samir Nimbalkar , Team Member , CSR Activity

Accumulated Depreciation would be $210,000 assuming that the company charges depreciation at the end of the year. Hence till30 June2021, depreciation for the period01.01.2021 to30.06.2021 has not been charged.

Muhammad Waseem
par Muhammad Waseem , Assistant Accountant , Popular Group

For solving above question when used double decline method got a percentage rate of and for first year we get $ depreciation exp and for second year we get $ and accumulated depreciation would be $

Mostafa Salama,  CMA
par Mostafa Salama, CMA , Accounts Officer , QAFCO (Qatar Fertiliser Company)

C. Is the correct answer . . . . . . 

More Questions Like This