2. Acquisition: At the time of purchase: DR:Construction in progress 720000 (600000+102000+18000)
CR:Bank deposits 720000
Construction and installation At the time of construction and installation: DR:Construction in progress 80000
CR:Construction materials 50000
Employee remuneration payable 30000
Carried forward at the time of completion of the project: DR:;Fixed Assets: 800000
CR:Construction in progress: 800000
3. Depreciation in '08: 80/5*2 = 320,000; Depreciation in '09: (80-32,000)
The depreciation in '09: (80-5*2=320,000) Annual depreciation: (80-32)/5*2=19.2 (note that the double-declining-balance method deducts the net salvage value only in the last 2 years and uses the average annual method)