Double declining balance method of depreciation, Accounting Basics

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Double declining balance method of depreciation

Smith Manufacturing purchased, for cash, three large pieces of equipment. Based on recent sales of similar equipment, the fair market values are as follows:

Piece 1 - $250,000
Piece 2 - $225,000
Piece 3 - $450,000

a. If all three pieces of the equipment were purchased for $850,000, what value should be assigned to each piece of equipment?

b. Assume a 5 year useful life with a residual value of $50,000, how much depreciation expense should the company record on its books each year using the straight line method of depreciation?

c. Assume a 5 year useful life with a residual value of $50,000, how much depreciation expense should the company record on its books each year using the double declining balance method of depreciation?

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Accounting Basics: Double declining balance method of depreciation

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Accounting Basics: Double declining balance method of depreciation

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Recent Questions Asked Accounting Basics

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Q : What the new segment margin for store q should be

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Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: Double declining balance method of depreciation

Reference No:- TGS079384

Recent Questions Asked Accounting Basics

Q : Describe exponential distribution

Q : What the new segment margin for store q should be

Q : Explain traditional role of hr and hr as strategic partner

Q : What are some of the concerns of the marketer

Q : Double declining balance method of depreciation

Q : What was the cost assigned to the units transferrred

Q : Formulate and find the best combination

Q : What amount should they record as interest expense

Q : Prepare a single-step income statement

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