Calculate Depreciation. A Machine Which Cost $300,000 Is Acquired on October 1

question 38

Essay

Calculate depreciation.
A machine which cost $300,000 is acquired on October 1, 2014. Its estimated salvage value is $30,000 and its expected life is eight years.

Instructions
(1) Calculate depreciation expense for 2014 and 2015 by each of the following methods, showing the figures used.

(a) Double-declining balance
(b) Sum-of-the-years'-digits
(2) At the end of 2015, which method results in the larger accumulated depreciation amount?

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Definitions:

Edward Hall

An anthropologist known for his studies on the cultural aspects of social interaction, including personal space and communication patterns.

Interpersonal Distance

The physical space between individuals during social interaction, which can reflect their relationship's intimacy level or social norms.

Public Distance

The physical space preferred by individuals during social interactions with unfamiliar or formal acquaintances, typically greater than personal space.

Eye Contact

The act of looking directly into another person's eyes, which can communicate various messages or emotions.