Question

Boat Ltd. has a major asset that has just been purchased and has been segregated into the following significant components made up of spare parts and major inspections. Component D consists of a group of insignificant components lumped together with an average cost and useful life. Original Component Quantity Unit Cost $121,000 41,000 8,100 2,100 Residual Value $5,100 wU AA Useful Life 12years 3years буеаrѕ 2years 550 Required: 1. Assuming straight-line is the appropriate method of depreciation, what is the amount of depreciation in year one? (Round down the intermediate calculations to the nearest whole dollar. Round final answer to nearest whole dollar.) The amount of depreciation in year one $ 102,736

I tried $102,740 as well and it was wrong.

Answer 1

Component	Original cost	Salavage value	Life	Depreciation	Quantity	Dep x Qty
	(a)	(b)	(c)	d=(a-b)/c	e	d x e
A	121000	5100	12	9658	4	38633
B	41000	0	3	3417	4	13667
C	8100	550	6	629	5	3146
D	2100	0	2	175	3	525
				Total Depreciation		55971