help double declining depreciation


Joined
Nov 8, 2013
Messages
1
Reaction score
0
2013
1. Acquired $80,000 cash from the issue of common stock.
2.

Purchased a computer system for $35,000. It has an estimated useful life of five years and a $5,000 salvage value.
3. Paid $2,450 sales tax on the computer system.
4. Collected $65,000 in fees from clients.
5. Paid $1,500 in fees to service the computers.
6. Recorded double-declining-balance depreciation on the computer system for 2013.
7. Closed the revenue and expense accounts to Retained Earnings at the end of 2013.

2014
1. Paid $1,000 for repairs to the computer system.
2. Bought off-site backup services to maintain the computer system, $1,500.
3. Collected $68,000 in fees from clients.
4. Paid $1,500 in fees to service the computers.
5. Recorded double-declining-balance depreciation for 2014.
6. Closed the revenue and expense accounts to Retained Earnings at the end of 2014.

2015
1.

Paid $6,000 to upgrade the computer system, which extended the total life of the system to six years. The salvage value did not change.
2. Paid $1,200 in fees to service the computers.
3. Collected $70,000 in fees from clients.
4. Recorded double-declining-balance depreciation for 2015.
5. Closed the revenue and expense accounts at the end of 2015.

so basically i am stuck on double declining depreciation for 2015


for 2013 it would be 14980
35000+2450=37450
1/5=.2
.2*2=.4 37450*.4=14980

for 2014 it would be 8988
37450-14980=22470
22470*.4=8988

so now I am stuck since in 2015 Paid $6,000 to upgrade the computer system, which extended the total life of the system to six years. The salvage value did not change.

I have no idea what to do at this point bc the numbers have changed
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Similar Threads

Ireland Double Declining Depreciation 1
UK Double write down / depreciation 2
UK Depreciation Change 6
Help in double entries 0
Double entry accounting exercise 1
Inflation and Depreciation question 1
New Zealand Help with depreciation on fixed assets? 1
Double tax treaty 2

Top