Compute Acquisition Cost=

32,000 + 5,000 + 3,000 = BD 40,000

32,000 + 5,000 = BD 37,000

BD 32,000

Compute Annual Depreciation Expense for the first year only (2017):

BD 37,000 / 4 years = BD 9,250

BD 40,000 - BD 1,500 / 4 years = BD 9,625

BD 40,000 / 4 years = BD 10,000

20

Compute the Net Book Value for the first year only (2017):

BD 40,000

BD 40,000 - BD 9,250 = BD 30,750

BD 40,000 - BD 9,625 = BD 30,375

18 Cost price Freight cost Taxes Salvage value Useful life BD32000 BD5000 BD3000 BD 1500 4 years 12. Use the following information in the table to answer the below three questions 1, 2, & 3 by using the Straight-Line method. Salman Company bought office equipment on January 1, 2017. Relevant information is given above in the table: 1- Compute Acquisition Cost= * (2.5 Points) 32,000 + 5,000 + 3,000 = BD 40,000 32,000 + 5,000 = BD 37,000 OBD 32,000