Question

Asset C3PO has a depreciable base of $21.45 million and a service life of 10 years. What would the accumulated depreciation be at the end of year five under the sum-of-the-years'-digits method? (Do not round intermediate calculations.)

Multiple Choice

• $5.85 million.

• $10.72 million.

• $15.60 million.

• None of these answer choices are correct.

Answer 1

Requirement 1 :typo mistake

Requirement 2 Computation of Depreciation under Sum of Years Digit Method: $ 21,450,000.00 Cost Less : Salvage Value Depreciable value (A) $ 21,450,000.00 Sum of Years = 1+2+3+4+5+6+7+8+9+10 55 Year Depreciation for year 1 Depreciation for year 2 Depreciation for year 3 Depreciation for year 4 Depreciation for year 5 Sum of years Depreciation expense = Depreciation expense * numerator(Years) / Sum of years 55 $ 3,900,000.00 55 $ 3,510,000.00 55 $ 3,120,000.00 55 $ 2,730,000.00 55 $ 2,340,000.00 15,600,000.00 $ 15.60 Millions