00:01
We need to find the depreciation expense.
00:05
So, for the first one, depreciation expense is evaluated as cost wherein we subtract residual value which is then divided by life of the assets.
00:38
So now putting in the values given to us 1 ,10 ,000 wherein we subtract 9 ,000 which is then divided by 5.
00:53
So the value then is 20 ,200.
01:02
A table is then formed as year, opening balance, depreciation, then closing balance.
01:28
So values we have are 2021 the opening balance is 1 ,10 ,000.
01:37
Its depreciation is 20 ,200.
01:41
So the closing balance then will be 89 ,800.
01:45
For the year 2022, opening balance is 89 ,800.
01:53
Depreciation is 20 ,200.
01:56
So the closing balance will be 69 ,600.
02:01
Then for 2023, the opening balance is 69 ,600.
02:07
The depreciation is 20 ,200.
02:10
So we have the closing balance as 49 ,400.
02:15
Next for 2024, the opening balance is 49 ,400.
02:22
Its depreciation is 20 ,200.
02:26
So closing balance will be 29 ,200.
02:31
Lastly for the year 2025, the opening balance is 29 ,200.
02:38
Its depreciation is 20 ,200.
02:41
So the closing balance then will be 9 ,000.
02:44
Further, now using the double declining method, then depreciation is evaluated as 1 divided by life of assets which is then multiplied by 2.
03:09
So now putting in the values we get 1 divided by 5 multiplied by 200.
03:18
So the value then is 40%.
03:21
A table is then formed as here we have year, then opening balance, depreciation, closing balance.
03:48
So putting in the values, 2021 the opening balance is $1 ,10 ,000.
03:59
Its depreciation is $44 ,000.
04:03
So the closing balance then will be $66 ,000.
04:07
Next for the year 2022, opening balance is $66 ,000.
04:19
Depreciation is $26 ,400.
04:24
Then closing balance will be $39 ,600...