Instructions

Evaluate the following scenario. Use a Word Document template to create a professional appearing Memo to the CFO of your organization. In this memo, address the budget issue in the scenario.

Scenario

HIM director Kimberly Pierce is hoping to budget for new office furniture for her staff. She has done some preliminary calculations to determine how much she will need and has determined that she needs to budget $10,000. Her chief financial officer has asked her to calculate the straight line depreciation for the office furniture, assuming there will be a residual value of $2,000. He agrees the useful life of the furniture is 10 years.

Deliverables

Use a Word Document to create a professional appearing Memo to the CFO. In this memo, you should include a detailed narrative explaining, in detail, the straight line depreciation of the proposed furniture purchase. Include your equation for making this calculation.

Justify your remarks. You will be graded on the quality of your response to these questions.