a printing press that costs $268,800 is depreciated using the 1.5 declining - balance method. the scrap…

a printing press that costs $268,800 is depreciated using the 1.5 declining - balance method. the scrap value of the press is estimated to be $3,000 and the press has an expected life of 20 years. prepare the first year of a depreciation schedule.\ncomplete the table\n(round to the nearest cent as needed.)

a printing press that costs $268,800 is depreciated using the 1.5 declining - balance method. the scrap value of the press is estimated to be $3,000 and the press has an expected life of 20 years. prepare the first year of a depreciation schedule.\ncomplete the table\n(round to the nearest cent as needed.)

Answer

Explanation:

Step1: Calculate the straight - line depreciation rate

The straight - line depreciation rate (r=\frac{1}{n}), where (n = 20) years. So (r=\frac{1}{20}=0.05) or (5%)

Step2: Calculate the declining - balance depreciation rate

The declining - balance depreciation rate (R = 1.5r). Substituting (r = 0.05), we get (R=1.5\times0.05 = 0.075) or (7.5%)

Step3: Calculate the first - year annual depreciation

The cost of the printing press (C=$268800). The annual depreciation in the first year (D_1 = C\times R) (D_1=268800\times0.075=$20160)

Step4: Calculate the accumulated depreciation

The accumulated depreciation at the end of year 1, (AD_1=D_1=$20160)

Step5: Calculate the end - of - year book value

The end - of - year book value (BV_1=C - AD_1) (BV_1=268800 - 20160=$248640)

Answer:

Year Annual depreciation Accumulated depreciation End - of - year book value
1 ($20160) ($20160) ($248640)