Louisiana Nursing Home (LNH) recently purchased new ventilator equipment for $240,000. A total of $36,000 in...

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Louisiana Nursing Home (LNH) recently purchased new ventilator equipment for $240,000. A total of $36,000 in building renovations were required to accommodate the new equipment. LNH thinks the new quipment could have a useful lif of 4 or 8 years. LNH also estimates that the salvage value could either be $12,000 or $20,000, depending on how intensely the equipment is used (the salvage value depends on intensity of use, NOT the useful life). Machine Cost: Additional Costs: Salvage Value: Useful Life: $240,000 $36,000 $12,000 or $20,000 4 or 8 years For each of the possible combinations of salvage value and useful life, use the straight line method to find the depreciation expense that would be taken each year over the useful life of the equipment: Total Cost: Case 1 $276,000 less: Salvage Value $12,000 Net Cost $ Estimated Life, in Years 4 Depreciation per Year $ S SA Case 2 $276,000 $20,000 $ SA 4 S Case 3 $276,000 $12,000 8 $ Case 4 $276,000 $20,000 8 Louisiana Nursing Home (LNH) recently purchased new ventilator equipment for $240,000. A total of $36,000 in building renovations were required to accommodate the new equipment. LNH thinks the new quipment could have a useful lif of 4 or 8 years. LNH also estimates that the salvage value could either be $12,000 or $20,000, depending on how intensely the equipment is used (the salvage value depends on intensity of use, NOT the useful life). Machine Cost: Additional Costs: Salvage Value: Useful Life: $240,000 $36,000 $12,000 or $20,000 4 or 8 years For each of the possible combinations of salvage value and useful life, use the straight line method to find the depreciation expense that would be taken each year over the useful life of the equipment: Total Cost: Case 1 $276,000 less: Salvage Value $12,000 Net Cost $ Estimated Life, in Years 4 Depreciation per Year $ S SA Case 2 $276,000 $20,000 $ SA 4 S Case 3 $276,000 $12,000 8 $ Case 4 $276,000 $20,000 8