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Ch. 8 - Long Lived AssetsWorksheetSee all chapters

# Depreciation for Partial Years

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Sections
Initial Cost of Long Lived Assets
Ordinary Repairs vs. Capital Improvements
Depreciation: Straight Line
Depreciation: Declining Balance
Depreciation: Units-of-Activity
Depreciation: Summary of Main Methods
Depreciation for Partial Years
Retirement of Plant Assets (No Proceeds)
Sale of Plant Assets
Change in Estimate: Depreciation
Intangible Assets and Amortization
Natural Resources and Depletion
Asset Impairments
Exchange for Similar Assets

Concept #1: Depreciation for Partial Years

Practice: DBQ Company purchased a machine on July 1, Year 1 for $60,000. The company estimated a five year useful life and$8,000 residual value. If the company uses the double-declining-balance method for depreciation, what will be the amount of accumulated depreciation on December 31, Year 2?

Practice: DAB Company purchased a machine on November 1, Year 1 for $12,000. DAB estimated that the machine could produce 60,000 units over its useful life and would be worth$2,000 as scrap. During Year 1, DAB produced 3,000 units. During Year 2, DAB produced 12,000 units. During Year 3, DAB produced 9,000 units. If DAB uses the units-ofproduction method for depreciation, what would be the net book value of the machine at the end of Year 2?