The California Crane Company purchased two new cranes. CCC uses the double-declining balance method of calculating depreciation. The data for each crane is given below. From this data, compute the first year depreciation for each crane and the value of each crane at the end of its first year of use. Scrap Depreciation Value at Cost Est. Life Value Year 1 End of first Year $220,000 10 years $22,000 $316,000 8 years $31,600 $44,400, $79,000 Depreciation; $175,600, $237,000 Value O $44,000, $79,000 Depreciation; $176,000, $237,000 Value S44,000, S63,200 Depreciation; $176,000, $252,800 Value S44,000, S80,000 Depreciation; S176,000, S236,000 Value
The California Crane Company purchased two new cranes. CCC uses the double-declining balance method of calculating depreciation. The data for each crane is given below. From this data, compute the first year depreciation for each crane and the value of each crane at the end of its first year of use. Scrap Depreciation Value at Cost Est. Life Value Year 1 End of first Year $220,000 10 years $22,000 $316,000 8 years $31,600 $44,400, $79,000 Depreciation; $175,600, $237,000 Value O $44,000, $79,000 Depreciation; $176,000, $237,000 Value S44,000, S63,200 Depreciation; $176,000, $252,800 Value S44,000, S80,000 Depreciation; S176,000, S236,000 Value
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 13PA: Colquhoun International purchases a warehouse for $300,000. The best estimate of the salvage value...
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