PE 10-5B; Revision of depreciation Equipment with a cost of $300,000 has an esti

Question

PE 10-5B; Revision of depreciation Equipment with a cost of $300,000 has an estimated residual value $42,000, has an estimated useful life of 24 years, and is depreciated by the straight-line method. (a) Determine the amount of the annual depreciation. (b) Determine the book value at the end of the fourteenth year of use. (c) Assuming that at the start of the fifteeth year the remaining life is estimated to be five years and the residual value is estimated to be $20,000, determine the depreciation expense for each of the remaining five years. Professor said: Straightline and Double decline 5 years

Explanation / Answer

a. (300,000 - 42,000)/24 = $10,750 per year answer: $10,750 per year b. 10,750*14 = 150,500 accumulated depreciation book value = 300,000 - 150,500 = 149,500 Answr: $149,500 c. new depreciation amount: (149,500 - 20,000)/5 = $25,900 per year answer: $25,900 per year

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.