On September 30 of the current year, a company acquired and placed in service a machine at a cost of $700,000. It has been estimated that the machine has a service life of five years and a salvage value of $40,000. Using the double-declining-balance method of depreciation, complete the schedule below showing depreciation amounts for all six years (round answers to the nearest dollar). The company closes its books on December 31 of each year. YearDepreciation for the PeriodEnd of Period?Beginning ofPeriod BookValueDepreciationRateDepreciationExpenseAccumulatedDepreciationBookValue1?????2?????3?????4?????5?????6?????
What will be an ideal response?
| Year | Depreciation for the Period | End of Period | |||
| ? | Beginning of Period Book Value | Depreciation Rate | Depreciation Expense | Accumulated Depreciation | Book Value |
| 1 | 700,000 | 40% | * $70,000 | $70,000 | $630,000 |
| 2 | 630,000 | 40% | 252,000 | 322,000 | 378,000 |
| 3 | 378,000 | 40% | 151,200 | 473,200 | 226,800 |
| 4 | 226,800 | 40% | 90,720 | 563,920 | 136,080 |
| 5 | 136,080 | 40% | 54,432 | 618,352 | 81,648 |
| 6 | 81,648 | 40% | ** 41,648 | 660,000 | 40,000 |
*for 3 months.
**for 9 months; adjusted to the salvage value.
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