Activity 10

Question 1

Diminishing Value Method

Date Opening Accumulated Depreciation Written Down
Balance Depreciation Value
1/7 $17,000 $6,800 $6,800 $10,200
1/7/14 $10,200 $10,880 $4,080 $6,120
1/7/15 $6,120 $13,328 $2,448 $3,672
1/7/16 $3,672 $14,796.80 $1,468.80 $2,203.20
1/7/17 $2,203.20 $17,000 $2,203.20 $0

Prime Cost Method

Date Asset on cost Accumulated Depreciation Written Down
Depreciation Value
1/7 $17,000 $3,400 $3,400 $13,600
1/7/14 $17,000 $6,800 $3,400 $10,200
1/7/15 $17,000 $10,200 $3,400 $6,800
1/7/16 $17,000 $13,600 $3,400 $3,400
1/7/17 $17,000 $17,000 $3,400 $0