Equipment with a cost of $423,800 has an estimated residual value of 48,800 has an estimated useful
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a. Determine the amount of the annual depreciation. 14,600 V b. Determine the book value after 17 full years of use. c. Assuming that at the start of the year 18 the remaining life is estimated to be 24 years and the residual value is estimated to be $70,000, determine the depreciation expense for each of the remaining 24 years. Feedback V Check My Work Asset minus residual value equals depreciable cost. Straight-line method allocates the depreciable cost of the asset equally over the expected useful life. The book value is the fixed asset cost less accumulated depreciation. Revising depreciation is necessary when estimates of residual values and/or useful lives of fixed assets change due to abnormal wear and tear or obsolescence. a. Determine the amount of the annual depreciation. 14,600 V b. Determine the book value after 17 full years of use. c. Assuming that at the start of the year 18 the remaining life is estimated to be 24 years and the residual value is estimated to be $70,000, determine the depreciation expense for each of the remaining 24 years. Feedback V Check My Work Asset minus residual value equals depreciable cost. Straight-line method allocates the depreciable cost of the asset equally over the expected useful life. The book value is the fixed asset cost less accumulated depreciation. Revising depreciation is necessary when estimates of residual values and/or useful lives of fixed assets change due to abnormal wear and tear or obsolescence.
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Related Book For
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
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