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Calculate Accumulated Depreciation for the following.

On January1,2015, Techno Plates  purchases a Machinery on Bank Loan for $400,000 which has an expected useful life of11 years and an estimated residual value of $15,000. What would the accumulated depreciation be on June30,2021, assume that the company uses straight-line method for depreciation?

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Question ajoutée par IMRAN ALI MOHAMMED , Accounts Officer , M/s. Euro Glazing Ltd
Date de publication: 2015/03/23
Muhammad Ramzan Tufail  ACCA
par Muhammad Ramzan Tufail ACCA , Assistant Finance Manager , Eltizam Asset Management Group

Using Straight Line: 400,000 -15,000 /11

                                    =35,000 Per Year Depreciation Charge

 

So, from2015 to2020 -6 Years =35,000 @6 Years =210,000

And from to -6 Months =35,000 /12 *6  =17,500

 

So, the Total Acc. Dep =210,000 +17,500

                                         =227.500 

Iam agree with the answer of Madam Mansi Sathaye and Mr Ramzan Tufail

Ahmed kandil
par Ahmed kandil , Cost Controller , Battour Holding Cpompany

annual depreciation = =385000

385000/11 =35000

the depreciation consumed is6.5 year 

accumulated =35000*6=210000

half of year =35000/2 =17500

total =210000+17500 =227500

 

C S Raghunandan Chikkaballapur Rao
par C S Raghunandan Chikkaballapur Rao , Freelancer : , Presently Working for : Brindavan Agencies,Kreations and Sreevamsa sales Organisation.

Cost of Machinery = $400,000. 

Residual Value after11 Years = $15,000. 

Expected useful life of Machinery =11 Years.

Date of purchase :01.01.2015 and Accumulated Depreciation required up to :30.06.2021.

The machinery cost already depreciated is $385,000 ( $400,000 - $15000 )

Method of depreciation is : SLV Method.

Per year depreciation = $385,000 /11 =35,000.

Depreciation for6 Years and6 months till :30.06.2021 from01.01.2015 = $227,500. 

If depreciation is provided on yearly basis then the answer is $210,000.

if depreciation is calculated up to30.06.2021, then the answer is $227,500. 

 

But the question is that what would be the accumulated depreciation as on30.06.2021 i.e. for06 years and06 months. Hence the Correct Answer is : $227,500.

rohit mehra
par rohit mehra , Group GM - Finance and accounts , Sun and Sand Group

dep = asset cost - residual cost / expected life * period

i.e. () /11 *6.5 =227500

Mohammed Shahid Ullah
par Mohammed Shahid Ullah , Executive Director (Finance) , Coal Power Generation Company Bangladesh Limited

The accumulated depreciation will be Tk.227,500. it is calculated for6 year6 month. per year depreciation is Tk.35,000/-

samin sunny
par samin sunny , Senior Finance & Accounts Officer , Fish Farm LLC

the accumulated depreciation is236364

Samsheer ck samsheer
par Samsheer ck samsheer , Accounts Manager , Al madina group

Correct Answer Is 

35000 Per Year

Total years=6.5 yrs

then the depreciation value for6.5 yrs will be6.50*35000=227500

Emmanuel Quaye
par Emmanuel Quaye , Accountant , Capital line Investmen

Asset price = $400,000

residual value = $15,000

useful life =11yrs

$400,000-150,000/11 = $35,000*6+ ($35,000/2)

Accumulated depn =$210,000+$17,500 = $227,500

note: jan1,2015 - june30,2021 =61/2yrs

Mark Angelo Damuag
par Mark Angelo Damuag , Financial Analyst , Evacare Management Consultancy Inc

The accumulated depreciation on June30,2021 will be227,500.

Afroz Mohammed
par Afroz Mohammed , Process Developer – Operations & HR Assistant , GE Capital (General Electric) Pvt Ltd

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