An asset owned by Photon Environmental was book-depreciated by the straight line method over a 6...

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An asset owned by Photon Environmental was book-depreciated by the straight line method over a 6 year period. The book values

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Answer 1

Answer #1

Depreciation (D) is determined by the change in book value.

Hence, D = 275,000 - 229,000 = 46,000/year

The asset has a 6 year life, i.e, there will be depreciation for 3 more years of depreciation.

So, Salvage value (S) = {229,000 - (3*46,000)} = (229,000 - 138,000) = - $91,000

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Answer 2

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