Asked by
Verified
Farr Company purchased a new van for floral deliveries on January 1 2017. The van cost $56000 with an estimated life of 5 years and $14000 salvage value at the end of its useful life. The double-declining-balance method of depreciation will be used. What is the balance of the Accumulated Depreciation account at the end of 2018?
A) $8960
B) $26880
C) $35840
D) $13440
Double-Declining-Balance
A method of accelerated depreciation that calculates depreciation expenses by doubling the straight-line rate.
Accumulated Depreciation
The cumulative sum of depreciation expense assigned to a physical asset since its initial use, representing its cost allocation.
Salvage Value
The estimated residual value of an asset at the end of its useful life, often considered in depreciation calculations.
- Calculate depreciation costs by employing distinct methods including straight-line, double-declining balance, and units-of-activity tactics.
- Learn the function of salvage value and useful life in the appraisal of depreciation.
- Exercise academic proficiency to figure out the book value of assets after undergoing depreciation for a fixed span.
Verified Answer
Learning Objectives
- Calculate depreciation costs by employing distinct methods including straight-line, double-declining balance, and units-of-activity tactics.
- Learn the function of salvage value and useful life in the appraisal of depreciation.
- Exercise academic proficiency to figure out the book value of assets after undergoing depreciation for a fixed span.
Related questions
Which of the Following Methods of Computing Depreciation Is Production ...
On January 1 a Machine with a Useful Life of ...
The Calculation of Depreciation Using the Declining Balance Method ...
Farr Company Purchased a New Van for Floral Deliveries on ...
A Plant Asset Cost $288000 and Is Estimated to Have ...