ACC 304 Course Great Wisdom / tutorialrank.com ACC 304 Course Great Wisdom / tutorialrank.com | Page 180

double-declining balance method. Salvage value is $3,000.
Depreciation for 2014 is

7) Tongas Company applies revaluation accounting to plant assets
with a carrying value of $1,600,000, a useful life of 4 years, and no
salvage value. Depreciation is calculated on the straight-line basis. At
the end of year 1, independent appraisers determine that the asset has
a fair value of $1,500,000.

The financial statements for year one will include the following
information

8) Tongas Company applies revaluation accounting to plant assets
with a carrying value of $1,600,000, a useful life of 4 years, and no
salvage value. Depreciation is calculated on the straight-line basis. At
the end of year 1, independent appraisers determine that the asset has
a fair value of $1,500,000.