Homework Answers
Solution
| Depreciation expense | |
| Year | Straight line |
| 2018 | $ 475.00 |
| 2019 | $ 1,425.00 |
Working note
Depreciation per unit is $1425 but only 4 month's depreciation will be recorded in year 2018.
| Straight line Method | ||
| A | Cost | $ 7,000 |
| B | Residual Value | $ 1,300 |
| C=A - B | Depreciable base | $ 5,700 |
| D | Life [in years left ] | 4 |
| E=C/D | Annual SLM depreciation | $ 1,425.00 |
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