Kansas Enterprises purchased equipment for $79,500 on January 1, 2015. The equipment is expected to have a ten-year life, with a residual value of $6,150 at the end of ten years.

Using the double-declining balance method, the book value at December 31, 2016 would be

Question

Nathanael Wong

Business

7 July, 09:02

Kansas Enterprises purchased equipment for $79,500 on January 1, 2015. The equipment is expected to have a ten-year life, with a residual value of $6,150 at the end of ten years.

Using the double-declining balance method, the book value at December 31, 2016 would be

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Shaun · Answer 1

Using the double-declining balance method, the book value at December 31, 2016 would be $ 46.944

Explanation:

Depreciation rate = 1/useful life * 100 = (1/10) * 100

2015 2016

Cost 73350 58.680

Rate 20% 20%

Dep 14.670 11.736

Book value 58.680 46.944

Kansas Enterprises purchased equipment for $79,500 on January 1, 2015. The equipment is expected to have a ten-year life, with a residual value of $6,150 at the end of ten years.Using the double-declining balance method, the book value at December 31, 2016 would be

Kansas Enterprises purchased equipment for $79,500 on January 1, 2015. The equipment is expected to have a ten-year life, with a residual value of $6,150 at the end of ten years.

Using the double-declining balance method, the book value at December 31, 2016 would be