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Different Methods of Depreciation

Jackel Industries presents you with the following information
Acc Dep
Date Salvage Life in Depreciation To Depreciation
Description Purchased Cost Value Years Method 12/31/2007 for 2008

Machine A 2/12/2006 142500 16000 10 (a) 33350 (b)
Machine B 8/15/2005 (c) 21000 5 SL 29000 (d)
Machine C 7/21/2004 75400 23500 8 DDB (e) (f)
Machine D 10/12/(g) 219000 69000 5 SYD 70000 (h)

Instructions: Complete the table for the year ended December 31, 2008. The company depreciates
all assets using the half-year convention.

(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)

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Solution Preview

Please see the attached file.

Methods of Depreciation

Description Date Purchased
Cost
Salvage
Life
Method Accum. Depr. to 2007 2008 Depr.
A 2/12/06 $142,500 $16,000 10 (a) SYD $33,350 (b) $19,550
B 8/15/05 (c) 79,000 21,000 5 SL 29,000 (d) 11,600
C 7/21/04 75,400 23,500 8 DDB (e) 47,567 (f) 4,333
D (g) 10/12/06 219,000 69,000 5 SYD 70,000 (h) 35,000

Machine A?Testing the methods
Straight-Line Method for 2006 $ 6,325 [($142,500 - $16,000) รท
10] X 1/2
Straight-Line Method for ...

Solution Summary

The solution explains the depreciation calculation under different methods

$2.19