Question 47 2 painta On anuary 1 2016 Chang Company acouired

Question 47 2 painta On anuary 1. 2016 Chang Company acouired aqument for $a00 The estimated ife of te O5 300

Solution

Answer B. $288 Rate of Depreciation under DDBM = 2 X 10% (Rate under Straight Line Method) Rate of Depreciation under DDBM = 20% Cost of Equipment - Jan 1, 2016 800 Less: Depreciation - $800 X 20% 160 WDV on Dec 31, 2016 640 Less: Depreciation - $640 X 20% 128 WDV on Dec 31, 2017 512 Accumulated Depreciation on Dec 31, 2017 = $160 + $128 Accumulated Depreciation on Dec 31, 2017 = $288