2015, equipment purchased for 42750. 4 years residual value 3350. 2017 useful life determined is 9...
Homework Answers
Depreciation of 2017= $ 2,221.43 or 2,221
Working
| Straight line Method | ||
| A | Cost | $ 42,750 |
| B | Residual Value | $ 3,350 |
| C=A - B | Depreciable base | $ 39,400 |
| D | Life [in years left ] | 4 |
| E=C/D | Annual SLM depreciation | $ 9,850.00 |
.
| Depreciation schedule-Straight line method | ||||
| Year | Book Value | Depreciation expense | Accumulated Depreciation | Ending Book Value |
| 2015 | $ 42,750.00 | $ 9,850.00 | $ 9,850.00 | $ 32,900.00 |
| 2016 | $ 32,900.00 | $ 9,850.00 | $ 19,700.00 | $ 23,050.00 |
.
| Straight line Method | ||
| A | Ending value at year 2016 | $ 23,050 |
| B | Residual Value | $ 7,500 |
| C=A - B | Depreciable base | $ 15,550 |
| D | Life [in years left ] [9-2] | 7 |
| E=C/D | Annual SLM depreciation | $ 2,221.43 |
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