Question

Question 2 1.2 pts The City of Houghton bought new municipal sewage equipment in the year 2010. The equipment cost 166,421 dollars and the city spent an additional 15,267 dollars for installation. The sewage equipment was put into service on June 1st, 2010 and the city removed the equipment from service on September 12, 2022. Using the US Straight Line Depreciation Schedule, estimate the total value of depreciation recorded in the accounting books for the years 2010 through 2022 (i.e. calculate the sum of depreciation in each year for years 2010 through 2022). (note: round your answer to the nearest cent and do not include spaces, currency signs, or commas; do not round the recovery factors from the depreciation tables)

Answer 1

Municipal sewage equipment      
Equipment Cost   166421
Installation cost    15267
Total Cost   181688
      
Equipment put into service   
01-Jun-10
Removed from service   
12-Sep-22
Total number of years asset used 12 years
      
Depreciation =
Cost - Residual value / Asset life     
Cost   181688
Resiudal Value   0
Life   12 years
Depreciation on straight line for a year = 15140.66667
Round Off    - 15,141
Year Period -1 Jan - 31 December

US Straight Line Depreciation Schedule

Year	Depreciaiton	Remark
2010	8,832	Depreciation will be on propotionate basis for this ear, as it is used only for 7 months Depreciation for 2010 = 15141 * 7/12
2011	15,141
2012	15,141
2013	15,141
2014	15,141
2015	15,141
2016	15,141
2017	15,141
2018	15,141
2019	15,141
2020	15,141
2021	15,141
2022	6,306	Total Depreciaiton till 2021 = 175383 Machine Cost = 181688 Cost - Depreciaiton charged = 181688 - 175382 =6306 (depreciaiton for the year 2022)