Depreciation Schedule: Balls and Bats, Inc.
Not what you're looking for?
Balls and Bats, Inc. purchased equipment on January 1, 2005, at a cost of $100,000. The estimated useful life is 4 years with a salvage value of $10,000.
1. Prepare two different depreciation schedules for the equipment - one using the double-declining balance method, and the other using the straight-line method. (Round to the nearest dollar).
2. Determine which method would result in the greatest net income for the year ending December 31, 2005.
3. How would taxes affect management's choice between these two methods for the financial statements?
Purchase this Solution
Solution Preview
1. Prepare two different depreciation schedules for the equipment - one using the double-declining balance method, and the other using the straight-line method. (Round to the nearest dollar).
Double-declining balance depreciation
Year Beg. BV Depreciation Expense End BV
2005 100,000 100,000*2/4=50,000 50,000
2006 50,000 50,000*2/4=25,000 25,000
2007 25,000 25,000*2/4=12,500 12,500
2008 ...
Purchase this Solution
Free BrainMass Quizzes
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Employee Orientation
Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.