A plant assets required at a total cost of $37,500 has anestimated scrap value of %2,500 and an anticipated useful life of 7years. Determine: 1. The annual rate (expressed as a percentage orfraction) of depreciation using the straight-line-method. 2. Theannual depreciation using the straight line method. 3. The firstyear's straight-line depreciation, assuming that the asset wasacquired 3 months into the current accounting period. 4. Continuingwith assumption (3), the value of the accumulated depreciationaccount after the second year's depreciation is recognized. 5. Theresidual value for the plant assets after the asset has beendepreciated for 7 years. 6. Using the information presented at thebeginning of the exercise 2, determine the five items assumingasset depreciation and using the double-declining method ofrecognizing depreciation. 7. Using the information presented at thebeginning of the exercise 2, determine the five items assumingasset depreciation and using the sum of the years' digitsmethod.
A plant assets required at a total cost of $37,500 has anestimated scrap value of %2,500 and an anticipated useful life of 7years. Determine: 1. The annual rate (expressed as a percentage orfraction) of depreciation using the straight-line-method. 2. Theannual depreciation using the straight line method. 3. The firstyear's straight-line depreciation, assuming that the asset wasacquired 3 months into the current accounting period. 4. Continuingwith assumption (3), the value of the accumulated depreciationaccount after the second year's depreciation is recognized. 5. Theresidual value for the plant assets after the asset has beendepreciated for 7 years. 6. Using the information presented at thebeginning of the exercise 2, determine the five items assumingasset depreciation and using the double-declining method ofrecognizing depreciation. 7. Using the information presented at thebeginning of the exercise 2, determine the five items assumingasset depreciation and using the sum of the years' digitsmethod.
