Marie asks…
I need help figuring out problems about the double balance declining method?
The following transactions, adjusting entries, and closing entries were completed by King Furniture Co. during a three-year period. All are related to the use of delivery equipment. The double-declining-balance method of depreciation is used.
2008
Jan. 7. Purchased a used delivery truck for $38,400, paying cash.
Feb. 27. Paid garage $240 for changing the oil, replacing the oil filter, and tuning the engine on the delivery truck.
Dec. 31. Recorded depreciation on the truck for the fiscal year. The estimated useful life of the truck is 8 years, with a residual value of $8,100 for the truck.
2009
Jan. 8. Purchased a new truck for $55,860, paying cash.
Mar. 13. Paid garage $260 to tune the engine and make other minor repairs on the used truck.
Apr. 30. Sold the used truck for $25,300. (Record depreciation to date in 2009 for the truck.)
Dec. 31. Record depreciation for the new truck. It has an estimated trade-in value of $10,100 and an estimated life of 7 years.
2010
July 1. Purchased a new truck for $79,000, paying cash.
Oct. 4. Sold the truck purchased January 8, 2009, for $33,050. (Record depreciation for the year.)
Dec. 31. Recorded depreciation on the remaining truck. It has an estimated residual value of $14,200 and an estimated useful life of 10 years.
2010
July 1. Purchased a new truck for $79,000, paying cash.
Oct. 4. Sold the truck purchased January 8, 2009, for $33,050. (Record depreciation for the year.)
Dec. 31. Recorded depreciation on the remaining truck. It has an estimated residual value of $14,200 and an estimated useful life of 10 years
author answers:
Use this formula when you get to the journal entries for depreciation. Double Declining Balance Depreciation Method Formula…
Depreciation Base * (2 * 100% / Useful Life of Asset in Years)
Thomas asks…
Why dont more people use the system ?
Why dont more people use the system ?
I am a Spanish guy from the islands , now living in MA. My girlfriend and i wont get married because she will lose her ” Benefits” ie..food stamps , section 8 , free medical insurance . fuel assistance. We are living like ” kings ” right now. 3 cars, new furniture, plenty of cash. I work under the table 23 dollars an hour roofing. We see all of the married people working just to make ends meat. Why wont they get divorced and do what we are doing ?
author answers:
Every one does things differently. What you are doing is illegal by the way, if you get caught, you will get fined, maybe go to jail and your gf will have to pay EVERYTHING back, so be care ful, also that is the why people don’t get divorced and do what you guys are doing.
Paul asks…
I am thinking about getting The RhapsodyBed by Tempur-Pedic….?
The reason I am thinking of getting this bed and not a standard coil bed is because of the following….If I sleep on my back or my stomach I wake up and my hips and lower back hurt badly…If I sleep on either shoulder I wake up and my neck and shoulder hurt very badly…I was told to get new pillows…I did and am on my 5th set in 1 year…I was told to get a firmer bed and that would work so that’s what I am pointing to….The only bad thing I have heard about Tempur-Pedic is that they sleep hot…I have talked to the sales rep on the phone and at several stores in town and there are all saying that the zip up lining is a new fabric so thy don’t get hot anymore…The bed cost $40000.00 for the king size…The furniture store in town said if I buy the bed I get 2 free pillows, 1 free set of sheets, 1 free mattress protector, free delivery, a free bed frame and a free 90 day home in trail…Now with the 90 day home trail if you take the bed back you have to by something else in the store that equals $4000.00…All the items that are free are all made by Tempur-Pedic…The issue I am having is $4000.00 is alot of cash and I don’t what to make a bad choice…Has anyone tried this bed??? If so likes or dislikes???
author answers:
Let’s look at this differently and see if some of it makes sense. They told you pillows, you tried that, it didn’t work. Now they say the bed and you are asking what if it doesn’t work? Good question because what are you going to do if you have to sleep some place else? The problem isn’t really the bed, it is your back and neck. I went through a lot of the same problems and now it doesn’t matter where I sleep or on what I sleep, I don’t have any trouble anymore. You have muscles in your back that are pinched or tight and when you sleep in different ways it can either pinch them harder or make them tighter. Exactly what happens doesn’t matter as long as you can get the relief you need. When you do you will find other things in life easier as well, just sitting around or standing, walking will feel differently because you are going to be rid of the pain in your back that is causing this to begin with. Here is what you do to release those muscles for your back and neck, and do the neck one first:
For your neck:
place your hand alongside your head and push your thumb in under your ear and place it on the muscle there. Take your fingers and place them on the back of your neck on the muscles there. Press them together and hold a good amount of pressure on them. Then relax, take a deep breath an happening, the muscle going limp under the pressure. Continue to hold until the entire muscle has gone limp.
Back:
Place your left hand on your left knee. Place your right hand over your left shoulder and with your fingertips find the muscle next to your spine. Press on it and hold. Relax, take a deep breath and exhale and don’t tense up any part of your body. After about 30 seconds there should be a release happening and when it does slowly lower yourself forward onto your right leg. If you can lean over the outside edge of your leg it will be better for your release. Continue holding for a total of one minute. Then release but rest your body there for one minute longer. Then reverse and do the right side.
For lower back, on the buttocks:
Put both hands behind your back and place them on the muscles alongside your spine and press on them and hold. Now relax, take a deep breath and exhale and don’t tense up any part of your body. When the release starts to happen, slowly lower yourself forward as far as you can go. Then release the pressure but hold your body there for one minute longer.
I added the lower back one as well, it may be of help. I have used that one all the way to the end of my tailbone and found results. If you have other problems let me know i will try to help. I feel like you, that is a lot of money for a bed that may not work, or if it does it’s still only while you are on it. I prefer to take care of the problem, not put bandaids on it.
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