Solution-Calculate amount of depreciation every year

Calculate amount of depreciation every year

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Reference no: EM132609745

Question - Big Steel Company uses double-declining balance method to calculate depreciation on its fixed assets and purchased machinery for production of goods. Cost of machinery including all relevant charges was $250,000. Company expects scrape value of machinery to be $10,000 at the end of useful life. Company estimates useful life of machinery as 10 years.

Required -

1. Calculate amount of depreciation every year up to the completion of useful life and prepare depreciation schedule.

2. Assume that by the end of useful life, company sells machinery at $12000, pass journal entry.

3. Assume that by the end of useful life, company does not have any scrap value and fully depreciated by $250000, pass journal entry to dispose of machinery?

Reference no: EM132609745

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Calculate amount of depreciation every year

Reference no: EM132609745

Reference no: EM132609745

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