A plant asset acquired on October 1, 2014, at a cost of ¥6,000,000 has an estimated useful life of 10 years. The residual value is estimated to be ¥600,000 at the end of the asset's useful life.
Instructions
Determine the depreciation expense for the first two years using:
(a) the straight-line method.
(b) the double-declining-balance method.

Question

Quizplus · Accepted Answer

The Answer of A plant asset acquired on October 1, 2014, at a cost of ¥6,000,000 has an estimated useful life of 10 years. The residual value is estimated to be ¥600,000 at the end of the asset's useful life.
Instructions
Determine the depreciation expense for the first two years using:
(a) the straight-line method.
(b) the double-declining-balance method.

A Plant Asset Acquired on October 1, 2014, at a Cost