Chapter 17 Problem 17-3
Depreciation Table – Straight Line
Accumulated
Year Particular Depreciation depreciation Book value
Acquisition cost 635,000
2008 120,000 120,000 515,000
2009 120,000 240,000 395,000
2010 120,000 360,000 275,000
2011 120,000 480,000 155,000
2012 120,000 600,000 35,000
600,000
Depreciation Table – Service Hours Method
Accumulated
Year Particular Depreciation depreciation Book value
Acquisition cost 635,000
2008 14,000 x 10 140,000 140,000 495,000
2009 13,000 x 10 130,000 270,000 365,000
2010 10,000 x 10 100,000 370,000 265,000
2011 11,000 x 10 110,000 480,000 155,000
2012 12,000 x 10 120,000 600,000 35,000
600,000
Depreciation rate per hour = 600,000 / 60,000 = 10
Depreciation Table – Production Method
2009 32,000 x 4 128,000 264,000 371,000
2010 25,000 x 4 100,000 364,000 271,000
2011 29,000 x 4 116,000 480,000 155,000
2012 30,000 x 4 120,000 600,000 35,000
Depreciation Table – Sum of Years’ Digits
Year Particular Depreciation depreciation Book value
Acquisition cost 635,000
2008 5/15 x 600,000 200,000 200,000 435,000
2009 4/15 x 600,000 160,000 360,000 275,000
2010 3/15 x 600,000 120,000 480,000 155,000
2011 2/15 x 600,000 80,000 560,000 75,000
2012 1/15 x 600,000 40,000 600,000 35,000
Depreciation Table – Double Declining Balance Accumulated
Year Particular Depreciation depreciation Book value
Acquisition cost 635,000
2008 40% x 635,000 254,000 254,000 381,000
2009 40% x 381,000 152,400 406,400 228,600
2010 40% x 228,600 91,440 497,840 137,160
2011 40% x 137,160 54,864 552,704 82,296
2012 82,296 – 35,000 47,296 600,000 35,000
Depreciation Table – Production Method
Accumulated
Year Particular Depreciation Depreciation Book value
Acquisition cost 635,000
2008 34,000 x 4 136,000 136,000 499,000
2009 32,000 x 4 128,000 264,000 371,000
2010 25,000 x 4 100,000 364,000 271,000
2011 29,000 x 4 116,000 480,000 155,000
2012 30,000 x 4 120,000 600,000 35,000
600,000
Depreciation rate per unit of output = 600,000 / 150,000 = 4
Depreciation Table – Sum of Years’ Digits
Accumulated
Year Particular Depreciation depreciation Book value
Acquisition cost 635,000
2008 5/15 x 600,000 200,000 200,000 435,000
2009 4/15 x 600,000 160,000 360,000 275,000
2010 3/15 x 600,000 120,000 480,000 155,000
2011 2/15 x 600,000 80,000 560,000 75,000
2012 1/15 x 600,000 40,000 600,000 35,000
600,000
SYD = 1 + 2 + 3 + 4 + 5 = 15
Depreciation Table – Double Declining Balance Accumulated
Year Particular Depreciation depreciation Book value
Acquisition cost 635,000
2008 40% x 635,000 254,000 254,000 381,000
2009 40% x 381,000 152,400 406,400 228,600
2010 40% x 228,600 91,440 497,840 137,160
2011 40% x 137,160 54,864 552,704 82,296
2012 82,296 – 35,000 47,296 600,000 35,000
600,000
Fixed rate = 100% / 5 = 20% x 2 = 40%
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