Question

Question: The hospital has acquired medical diagnostic equipment that cost $3,000,000 total. In addition, the hospital had to pay $55,000 to have the equipment shipped to it from the manufacturer, and $60,000 to install the equipment. It is expected that the equipment has a 7-year useful life, and a $200,000 salvage value. Calculate the ten years of depreciation using straight line, double declining balance, and sum-of-the-years digits

Equipment Other Cost Full Value Useful Life Salvage Value Depreciable Base Straight-Line Annual Accumulated Depreciation Depreciation Double Declining Balance Annual Accumulated Depreciation Depreciation Sum-of-the-years Digits Annual Accumulated Depreciation Depreciation Year پر ہم بیا ط ا ہے

Answer 1

		Equipemnt Cost			$3,000,000.00
		Freight			$55,000.00
		Installation			$60,000.00
		Total Cost			$3,115,000.00
		Life			7 Years
		Salvage Value			$200,000.00
				Straight Line			Double Declining			Sum of Year Digits
				Annual Dep	Accumulated Dep		Annual Dep	Accumulated Dep		Annual Dep	Accumulated Dep
		Year
		1		$416,428.57	$416,428.57		$890,000.00	$890,000.00		$728,750.00	$728,750.00
		2		$416,428.57	$832,857.14		$635,714.29	$1,525,714.29		$624,642.86	$1,353,392.86
		3		$416,428.57	$1,249,285.71		$454,081.63	$1,979,795.92		$520,535.71	$1,873,928.57
		4		$416,428.57	$1,665,714.29		$324,344.02	$2,304,139.94		$416,428.57	$2,290,357.14
		5		$416,428.57	$2,082,142.86		$231,674.30	$2,535,814.24		$312,321.43	$2,602,678.57
		6		$416,428.57	$2,498,571.43		$165,481.64	$2,701,295.89		$208,214.29	$2,810,892.86
		7		$416,428.57	$2,915,000.00		$118,201.17	$2,819,497.06		$104,107.14	$2,915,000.00
							Note: The remaining amount will be true-up in year 7
Formula's				Total Cost - Salvage Value			=DDB (cost, salvage, life, period, [factor])			SYD (cost, salvage, life, period,
				Useful Life
							cost - Initial cost of asset. salvage - Asset value at the end of the depreciation. life - Periods over which asset is depreciated. period - Period to calculation depreciation for. factor - [optional] Rate at which the balance declines. If omitted, defaults to 2			cost - Initial cost of asset. salvage - Asset value at the end of the depreciation. life - Periods over which asset is depreciated. period - Period to calculation depreciation for.