De Anza College... history online eBook Show Me How Chapters 3,4,5 an... Feedback Calculator (1) Warning!...

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De Anza College... history online eBook Show Me How Chapters 3,4,5 an... Feedback Calculator (1) Warning! MyPortal MyPortal/Foothill... Dropbox-EWRT... Th Grades: View Printem Revision of Depreciation A Building with a cost of $360,000 has an estimated residual value of $144,000, has an estimated useful life of 9 years, and is depreciated by the straight-line method. a. What is the amount of the annual depreciation? 216,000 X b. What is the book value at the end of the fifth year of use? c. If at the start of the sixth year it is estimated that the remaining life is 5 years and that the residual value is $100,000, what is the depreciation expense for each of the remaining 5 years? Check My Work Straight-line depreciation allocates the depreciable cost of the asset equally over the period of use. 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. De Anza College... history online eBook Show Me How Chapters 3,4,5 an... Feedback Calculator (1) Warning! MyPortal MyPortal/Foothill... Dropbox-EWRT... Th Grades: View Printem Revision of Depreciation A Building with a cost of $360,000 has an estimated residual value of $144,000, has an estimated useful life of 9 years, and is depreciated by the straight-line method. a. What is the amount of the annual depreciation? 216,000 X b. What is the book value at the end of the fifth year of use? c. If at the start of the sixth year it is estimated that the remaining life is 5 years and that the residual value is $100,000, what is the depreciation expense for each of the remaining 5 years? Check My Work Straight-line depreciation allocates the depreciable cost of the asset equally over the period of use. 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.

Answer rating: 100% (QA)

Annual depreciation using straight line method Original cost Scrap value Useful life 36000... View the full answer