The hospital has acquired medical diagnostic equipment that cost $650,000 total. In addition, the hospital had to
Question:
The hospital has acquired medical diagnostic equipment that cost $650,000 total. In addition, the hospital had to pay $25,000 to have the equipment shipped to it from the manufacturer, and $50,000 to install the equipment. It is expected that the equipment has a 10-year useful life, and a $80,000 salvage value. Calculate the ten years of depreciation using straight line, double declining balance, and sum-of-the-years digits.
Equipment | $650,000 | Method | Formula | |||||
Other Cost | $75,000 | Annual Deprec. | $80,500 | Straight-Line | cost-salvage value/ useful Life | |||
Full Value | $725,000 | Asset Valuation | $805,000 | DDB | cost x 2/useful life | |||
Useful Life | 10 | Sum of the years… | (c-s.v)useful life/ Sum of the yrs. | |||||
Salvage Value | $80,000 | |||||||
Depreciable Base | $570,000 | |||||||
Sum-of-the-years Digits | 55 | |||||||
Straight-Line1 | Double Declining Balance ( DDB) | Sum-of-the-years Digits (SYD) | ||||||
Year | Annual Depreciation | Accumulated Depreciation | Annual Depreciation | Accumulated Depreciation | Annual Depreciation | Accumulated Depreciation | ||
1 | $80,500 | $80,500 | $80,500 | $309,400 | $309,400 | |||
2 | $80,500 | $161,000 | ||||||
3 | $80,500 | $241,500 | ||||||
4 | $80,500 | $322,000 | ||||||
5 | $80,500 | $402,500 | ||||||
6 | $80,500 | $483,000 | ||||||
7 | $80,500 | $563,500 | ||||||
8 | $80,500 | $644,000 | ||||||
9 | $80,500 | $724,500 | ||||||
10 | $80,500 | $805,000 |
Discovering Advanced Algebra An Investigative Approach
ISBN: 978-1559539845
1st edition
Authors: Jerald Murdock, Ellen Kamischke, Eric Kamischke