Homework Answers
Given
Initial Cost=C=$5000
Salvage=S=$1000
Useful life=N=8 years
In case of Straight line depreciation annual depreciation is same for all years i.e.
Straight Line Depreciation perr year=DSLD=(C-S)/N=(5000-1000)/8=$500
| Year | Dt=DSLD | B.Vt=BVt-1-Dt |
| 0 | 5000 | |
| 1 | 500 | 5000-500=4500 |
| 2 | 500 | 4500-500=4000 |
| 3 | 500 | 4000-500=3500 |
| 4 | 500 | 3500-500=3000 |
| 5 | 500 | 3000-500=2500 |
| 6 | 500 | 2500-500=2000 |
| 7 | 500 | 2000-500=1500 |
| 8 | 500 | 1500-500=1000 |
(Note : Figures in dollars)
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