Five O'Clock, Inc. purchased a van on January 1, 2017, for $800,000. Estimated life of the van
Question:
Five O'Clock, Inc. purchased a van on January 1, 2017, for $800,000. Estimated life of the van was five years, and its estimated residual value was $90,000. Five O'Clock uses the straight-line method of depreciation. Prepare the depreciation schedule.
Depreciation for the year
Depre- Accumu-
Useful ciation lated Book
Date Asset cost Depreciable cost life expense depreciation value
1-1-2017 $800,000 $800,000
12-31-2017 ($800,000 - $90,000) 5 $142,000 $142,000 658,000
12-31-2018 ($800,000 - $90,000) 5 142,000 284,000 516,000
12-31-2019
12-31-2020
12-31-2021
Financial Accounting
ISBN: 978-1118978085
IFRS 3rd edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso