Problem 29-14
Cost 10,000,000
Less: Residual value 1,000,000
Depreciable amount 9,000,000
SYD (8(8+1/2) 36
Year Particular Depreciation Accumulated dep. Carrying amount
Acquisition cost 10,000,000
2021 8/36 x 9,000,000 2,000,000 2,000,000 8,000,000
2022 7/36 x 9,000,000 1,750,000 3,750,000 6,250,000
Carrying amount - 2022 6,250,000
Less: Residual value 400,000
Carrying amount - Jan. 2023 5,850,000
Remaining useful life (6 years - 2 years) 4
SYD (4(4+1/2) 10
Depreciation (4/10 x 5,850,000) for 2023 2,340,000
Add: Accumulated depreciation - 2022 3,750,000
Accumulated depreciation - 2023 6,090,000
Problem 29-15
1. Double declining method
Straight line rate (100%/5) 20%
Double declining rate (20% x 2) 40%
Cost 4,000,000
Less: Accumulated depreciation 2,560,000
Carrying amount - Jan. 1, 2023 1,440,000
Multiply by Double declining rate 40%
Depreciation - 2023 576,000
2. SYD Method
Cost 2,000,000
Less: Residual value 200,000
Depreciable amount 1,800,000
SYD (5(5+1/2) 15
Year Particular Depreciation Accumulated dep. Carrying amount
Acquisition cost 2,000,000
2020 5/15 x 1,800,000 600,000 600,000 1,400,000
2021 4/15 x 1,800,000 480,000 1,080,000 920,000
2022 3/15 x 1,800,000 360,000 1,440,000 560,000
2023 2/15 x 1,800,000 240,000 1,680,000 320,000
3. Straight line method
Cost 2,800,000
Less: Residual value 560,000
Depreciable amount 2,240,000
Annual depreciation (2,240,000/5) 448,000
Cost 2,800,000
Less: Accumulated depreciation (448,000 x 3) 1,344,000
Carrying amount - Jan. 1, 2023 1,456,000
Sale price 1,700,000
Less: Carrying amount - Jan. 1, 2023 1,456,000
Gain on sale of Asset C 244,000
Problem 29-16
1. SYD Method
Cost 5,000,000
Less: Residual value 1,000,000
Depreciable amount 4,000,000
SYD (5(5+1/2) 15
Year Particular Depreciation Accumulated dep. Carrying amount
Acquisition cost 5,000,000
2023 5/15 x 4,000,000 1,333,333 1,333,333 3,666,667
2024 4/15 x 4,000,000 1,066,667 2,400,000 2,600,000
2025 3/15 x 4,000,000 800,000 3,200,000 1,800,000
Depreciable amount 4,000,000
Multiply by remaining useful life 3
Total 12,000,000
Divided by SYD 15
Depreciation - 2025 800,000
2. Double declining method
Straight line rate (100%/5) 20%
Double declining rate (20% x 2) 40%
Year Particular Depreciation Accumulated dep. Carrying amount
Acquisition cost 5,000,000
2023 5,000,000 x 40% 2,000,000 2,000,000 3,000,000
2024 3,000,000 x 40% 1,200,000 3,200,000 1,800,000
Accumulated depreciation - 2023 2,000,000
Add: Depreciation - 2024 1,200,000
Accumulated depreciation - 2024 3,200,000
3. Miles driven method
Cost 5,000,000
Less: Residual value 1,000,000
Depreciable amount 4,000,000
Divided by useful life in miles 100,000
Depreciation rate per miles 40
Year Particular Depreciation Accumulated dep. Carrying amount
Acquisition cost 5,000,000
2023 30,000 x 40 1,200,000 1,200,000 3,800,000
2024 20,000 x 40 800,000 2,000,000 3,000,000
2025 15,000 x 40 600,000 2,600,000 2,400,000
Accumulated depreciation - 2024 2,000,000
Add: Depreciation - 2025 600,000
Accumulated depreciation - 2025 2,600,000