For Each of the Following Fixed Assets,determine the Depreciation Expense

question 154

Essay

For each of the following fixed assets,determine the depreciation expense for Year 3: Disposal date is N/A if asset is still in use.
Method: SL = straight line; DDB = double declining balance Assume the estimated life is 5 years for each asset.

$\begin{array}{|l|c|c|c|c|c|c|}\hline & & & & & & \\\text { Item } & \text { Cost } & \begin{array}{c}\text { Residual } \\\text { Value }\end{array} & \text { Purchase Date } & \text { Disposal Date } & \begin{array}{c}\text { Depr. } \\\text { Method }\end{array} & \begin{array}{c}\text { Depr. } \\\text { Expense } \\\text { Year 3 }\end{array} \\\hline \text { A } & \$ 40,000 & \$ 4,000 & \text { July 1, Year 3 } & \text { N/A } & \text { SL } & \\\hline \text { B } & \$ 50,000 & \$ 5,000 & \text { Jan. 1,Year 1 } & \text { Aug. 31,Year 3 } & \text { SL } & \\\hline \text { C } & \$ 60,000 & \$ 2,000 & \text { Oct. 1, Year 3 } & \text { N/A } & \text { DDB } & \\\hline \text { D } & \$ 80,000 & \$ 10,000 & \text { Jan. 1, Year 2 } & \text { April 1,Year 3 } & \text { DDB } & \\\hline\end{array}$

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Definitions:

Detrital Food Web

A complex network of food chains based on the consumption of dead organic matter (detritus) by decomposers and detritivores.

Grazing Food Web

A community of organisms where the primary energy transfer is through consumption of plants (primary producers) by herbivores (grazers).

Atmospheric Carbon Dioxide

A greenhouse gas present in the Earth's atmosphere, contributing to the greenhouse effect and global warming.

Carbonic Acid

A weak acid formed in solution when carbon dioxide dissolves in water, playing a crucial role in the carbon cycle and the acid-base balance in blood.