question archive Big Steel Company uses double-declining balance method to calculate depreciation on its fixed assets and purchased machinery for production of goods
Big Steel Company uses double-declining balance method to calculate depreciation on its fixed assets and purchased machinery for production of goods
Subject:AccountingPrice: Bought3
Big Steel Company uses double-declining balance method to calculate depreciation on its fixed assets and purchased machinery for production of goods. Cost of machinery including all relevant charges was $250,000. Company expects scrape value of machinery to be $10,000 at the end of useful life. Company estimates useful life of machinery as 10 years. Required:
1. Calculate amount of depreciation every year up to the completion of useful life and prepare depreciation schedule.
2. Assume that by the end of useful life, company sells machinery at $12000, pass journal entry.
3. Assume that by the end of useful life, company does not have any scrap value and fully depreciated by $250000, pass journal entry to dispose of machinery
