A plant asset under construction by a firm for its
own use was completed at the end of the current year. The following
costs were incurred:
|Posted: 18 Sep 2009 at 21:41 | IP Logged
The asset has a service life of 10 years, estimated
residual value of $10,000, and will be depreciated under the
double-declining balance method. At completion, the asset was worth
$105,000 at fair value. What amount of depreciation will be recognized
on the asset in total over its service life?
Ans = 95,000
In DDB method residual value is not subtracted so why is residual value subtracted in this question?
01/24/09 - REG - 91
02/28/09 - BEC - 85
10/19/09 - FAR - 86
02/01/10 - AUD - 88 :):)