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3 years ago

Computing Straight-Line and Double-Declining-Balance Depreciation

Business

1 answer:

Sedbober [7]3 years ago

7 0

Answer:

2016 = $45,570

2017 = $45,570

2016 = $102,080

2017 = $68,014

Explanation:

Straight line method

Straight line method charges a fixed amount of depreciation

Depreciation Charge = (Cost - Salvage Value) ÷ Estimated useful life

2016

Depreciation Charge = $45,570

2017

Depreciation Charge = $45,570

Double declining method

Double declining method charges a higher amount of depreciation at the early years and less in the later years

Depreciation Charge = 2 x SLDP x BVSLDP

2016

Depreciation Charge = 2 x 16.67 % x $306,180 = $102,080

2017

Depreciation Charge = 2 x 16.67 % x ($306,180 - $102,080) = $68,014

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3 years ago

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2 years ago

Sultan Services has million shares outstanding. It expects earnings at the end of the year of million. Sultan pays out 60% of i

sukhopar [10]

Answer: $73.33

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