Straight line method :
Depreciation expense = $35,000-3,500 / 5 = $6,300
Year | Annual depreciation | Accumulated depreciation | Book value |
2016 | $6,300 | $6,300 | $28,700 (35,000-6,300) |
2017 | 6,300 | 12,600 | 22,400 (35,000-12,600) |
2018 | 6,300 | 18,900 | 16,100 (35,000-18,900) |
2019 | 6,300 | 25,200 | 9,800 (35,000-25,200) |
2020 | 6,300 | 31,500 | 3,500 (35,000-31,500) |
Units of production method:
Depreciation rate per year = $35,000-3,500 / 150,000 = $0.21
Year | Annual depreciation | Accumulated depreciation | Book value |
2016 | $2,100 (10,000*$0.21) | $2,100 | $32,900 (35,000-2,100) |
2017 | 4,200 (20,000*$0.21) | 6,300 | 28,700 (35,000-6,300) |
2018 | 6,300 (30,000*$0.21) | 12,600 | 22,400 (35,000-12,600) |
2019 | 8,400 (40,000*$0.21) | 21,000 | 14,000 (35,000-21,000) |
2020 | 10,500 (50,000*$0.21) | 31,500 | 3,500 (35,000-31,500) |
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