Given the following information, calculate the depreciation allowance for year 1. Depreciable Basis: $200,000, Declining Balance Depreciation: 175%, Cost Recovery Period: 27 years.

Question

Quizplus · Accepted Answer

The depreciation allowance for year 1 using the 175% declining balance method is calculated as: (Depreciable Basis / Cost Recovery Period) * 175% = ($200,000 / 27) * 1.75 = $12,963.

Given the Following Information, Calculate the Depreciation Allowance for Year