In early January 2011, LabTech purchases computer equipment for $147,000 to use in operating activities for the next four years It estimates the equipments salvage value at $30,000 Prepare a table showing depreciation and book value for each of the four years assuming straight line depreciation ...

Straightline depreciation 147000 30000 ...

In early January 2011, LabTech purchases computer equipment for $147,000 to use in operating activities for the

Question:

In early January 2011, LabTech purchases computer equipment for $147,000 to use in operating activities for the next four years. It estimates the equipment’s at $30,000. Prepare a table showing depreciation and book value for each of the four years assuming straight-line depreciation.

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...