Brief Exercise 11-07
Crane Company purchased a computer for $8,080 on January 1,
2019. Straight-line depreciation is used, based on a 5-year life
and a $1,010 salvage value. On January 1, 2021, the estimates are
revised. Crane now feels the computer will be used until December
31, 2022, when it can be sold for $505.
Compute the 2021 depreciation. (Round answer to 0
decimal places, e.g. 45,892.)
Depreciation expense, 2021 | $ |
PLEASE SHOW ALL WORK.
Depreciation for 2021= $2,373.50 or 2374.
Working
Straight line Method for 2019 till 2019 to 2020 | ||
A | Cost | $ 8,080 |
B | Residual Value | $ 1,010 |
C=A - B | Depreciable base | $ 7,070 |
D | Life [in years left ] | 5 |
E=C/D | Annual SLM depreciation | $ 1,414.00 |
.
Depreciation schedule-Straight line method | ||||
Year | Book Value | Depreciation expense | Accumulated Depreciation | Ending Book Value |
2019 | $ 8,080.00 | $ 1,414.00 | $ 1,414.00 | $ 6,666.00 |
2020 | $ 6,666.00 | $ 1,414.00 | $ 2,828.00 | $ 5,252.00 |
.
Straight line Method - for 2021 | ||
A | Cost | $ 5,252 |
B | Residual Value | $ 505 |
C=A - B | Depreciable base | $ 4,747 |
D | Life [in years left ] (4-2) | 2 |
E=C/D | Annual SLM depreciation | $ 2,373.50 |
Brief Exercise 11-07 Crane Company purchased a computer for $8,080 on January 1, 2019. Straight-line depreciation...
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