A company purchased a POS cash register on January 1 for $5,400. This register has a useful life of 10 years and a salvage value of $400.?

the value of the asset at the end of its useful life is $864

C. $864. THAT IS CURRECT ANSWER 

D. 1K.........................................................................

Straight-Line Depreciation Percent = 100% / 10 years = 10% / year

Depreciation Rate = 2 x 10% = 20% / year

Depreciation for a Period = 20% x Book Value at Beginning 

• Depreciation for Period 1 = 20% x $5,400= $1,080
• Depreciation for Period 2 = 20% x (Accumulated Depreciation:$5,400- $1,080) =  $864

Answer Is C : 864 doubble declining method .Sure

 

1. • Straight-Line Depreciation Percent = 100% / 10 years = 10% / year
   • Depreciation Rate = 2 x 10% = 20% / year
   • Depreciation for a Period = 20% x Book Value at Beginning of the Period
     • Depreciation for Period 1 = 20% x $5,400= $1,080
     • For Periods 2 and greater, depreciation is 20% x ($5,400- Accumulated Depreciation )
     • Depreciation for Period 2 = 20% x ($5,400- $1,080) =  $864

Accumulated Depreciation would be $210,000 assuming that the company charges depreciation at the end of the year. Hence till30 June2021, depreciation for the period01.01.2021 to30.06.2021 has not been charged.

For solving above question when used double decline method got a percentage rate of and for first year we get $ depreciation exp and for second year we get $ and accumulated depreciation would be $

C. Is the correct answer . . . . . .