Questions -
Q1. Correia Merchandising's equipment, all of which was purchased on June 1, cost $95,000, with an estimated residual or salvage value of $5,000, and a useful life of five years.
Assuming that Correia Merchandising uses the double-declining-balance depreciation method, calculate the dollar amount reported in the company's general ledger equipment account at the end of its first year ended May 31.
a. $113,000
b. $57,000
c. $95,000
d. $133,000
e. $77,000
Q2. Correia Merchandising's equipment, all of which was purchased on June 1, cost $95,000, with an estimated residual or salvage value of $5,000, and a useful life of five years.
Assuming that Correia Merchandising uses the double-declining-balance depreciation method, calculate the dollar amount reported in the company's general ledger accumulated depreciation, equipment account at the end of its first year ended May 31.
a. $57,000
b. $36,000
c. $18,000
d. $38,000
e. $77,000