Answer :
Answer:
$8,528
Explanation:
A
The double-declining method uses twice the rate of the straight-line depreciation method.
For Talia's tutu, the straight-line method will be 1/5 x 100
=0.2 x 100
=20%
The double-declining method will use 40%
The depreciation schedule for three years will be as follows for 5 years is as follow
Opening balance Depreciation amount new Book value
$55,000 $22,000 $33,000
$33,000 $13,200 $19,800
$19,800 $7,920 $11, 880
$11,880 $4,752 $ 7,128
$7,128 $,2,851.2 $,4,276.8
B.
If the asset is sold after three years.
The Book value after 3 years = $11,880
The machine is sold for $25,000
the gross profits from the machine
= $25,000 - $11,880
=$13,120
the tax rate =35%
=35/100 x $13,120
=0.35 x $13,120
=$4,592
net realized = $13,120 - $4,592
= $8,528
The Correct Answer is: $8,528
A . when The double-declining method is used twice the rate of the straight-line depreciation method.
- After that For Talia's tutu, the straight-line method will be 1/5 x 100
- Then =0.2 x 100
- Now =20%
- When The double-declining method will use that is 40%
- So that The depreciation schedule for three years will be as follows for 5 years is as follow
- Now the Opening balance Depreciation amount new Book value will be:
- Then $55,000 $22,000 $33,000
- Then $33,000 $13,200 $19,800
- Now $19,800 $7,920 $11, 880
- When the $11,880 $4,752 $ 7,128
- Now $7,128 $,2,851.2 $,4,276.8
B. When If the asset is sold after three years are:
- So that The Book value after 3 years = $11,880
- Now The machine is sold for $25,000
- Then the gross profits from the machine will be:
- After that = $25,000 - $11,880
- Then =$13,120
- the tax rate =35%
- =35/100 x $13,120
- =0.35 x $13,120
- =$4,592
- Then the net realized = $13,120 - $4,592
- After that the = $8,528
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