Reference no: EM132488131
Given the following four dates for a dividend payment procedure: April 10, April 28, April 30, and May 15. The record date is April 28 and the ex-dividend date is April 30.
True
or
False
Point 1: On January 1, 2015, Company purchased a machine for $153,300. paid $12,000 to ship the machine from the manufacturer in China and $3,200 in customs fees and $1,500 to rearrange the workspace to fit the machine. The machine had a $20,000 salvage value and a five -year useful life.
Question 1. Calculate the depreciation expense, accumulated depreciation and book value of the asset for all five years, assuming that Company uses the double-declining balance method.
To find depreciation rate we take 2 over the useful life of the asset. 2/5= 0.4=40%
169,700 * 40%= 67,880
Book Value * Depreciation Rate = Annual Depreciation Expense
Year Expense Depreciation Value
1 $67,880 $67,880 $101,820
2 $40,728 $108,608 $61,092
3 $24,437 $133,045 $36,655
4 $14,662 $147,707 $21,993
5 $8,797.20 $156,504 $13,196
1) 169,700-67,880= 101,820
2) 101,820 * 0.40 = 40,728. 67,880 + 40,728 = 108, 608. 169,700-108,608=61,092
3) 69,092 * 0.40=24,436.8 (rounded 24,437). 24,437 + 108,608=133,045. 169,700-133,045=36,655.
4) 36,655 * 0.40 = 14,662. 14,662 + 133,045= 147,707. 169,700- 147,707=21,993
5) 21,993 * 0.40= 8,797. 8797 + 147,707=156,504. 169,700-156,504=13,196