Bramble Company purchases equipment on January 1, Year 1, at a cost of $552,000. The asset...

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Bramble Company purchases equipment on January 1, Year 1, at a cost of $552,000. The asset...

Bramble Company purchases equipment on January 1, Year 1, at a cost of $552,000. The asset is expected to have a service life of 12 years and a salvage value of $49,680

compute the amount of depreciation for each of Years 1 through 3 using the straight-line depreciation method

business accounting

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Answer 1

Answer #1

Ans.	Straight line depreciation = (Cost of asset - Residual value) / Useful life in years
		($552,000 - $49,680) / 12
		$502,320 / 12
		$41,860

	*In Straight line method the depreciation is equal in each year.

	Year	Depreciation
	1	$41,860
	2	$41,860
	3	$41,860

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Answer 2

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