Return to ques In early January 2017 NewTech purchases compu

Return to ques In early January 2017, NewTech purchases computer equipment for $270,000 to use in operating activities for the next four years. It estimates the equipment\'s salvage value at $31,000 Prepare a table showing depreciation and book value for each of the four years assuming double-declining-balance depreciation. (Enter all amounts positive velues.) Answer is complete but not entirely correct. Depreciation for the Period End of Period Beginning- YearYear Book Annual Accumulsted Year-End Depreciation Book Value Rate s 270nd- 50%es 13500001 1350000 1350000 2018 2019 2020 Total 135.000 67 500 33.750 0%s135.000s 135,000s 135,000 50% -67,500° 202 5000: 67500 50% 50 33 750 236 250 33,750 875 253 125 16,875 $ 253.125

Solution

$33,750 minus (50% of $33,750) equals $16,875, which is less than the salvage value of $31,000.
*So we restrict the depreciation upto Salvage value = $33,750 - $31,000 = $2,750

	Depreciation for the period	End of Period
Year	Beginning Year Book Value	Depreciation Rate	Annual Depreciation	Accumulated Depreciation	Year-End Book Value
2017	$270,000	50%	$135,000	$135,000	$135,000
2018	135,000	50%	67,500	202,500	67,500
2019	67,500	50%	33,750	236,250	33,750
2020	33,750	Force	2,750*	239,000	31,000
Total			$239,000