Question: straight line depreciation method Excercise 2 A fixed asset is purchased on 1 January 2011. Information relating to the asset is as follows: Cost of

straight line depreciation method

Excercise 2 A fixed asset is purchased on 1 January 2011. Information relating to the asset is as follows: Cost of acquisition $110,000 Residual Value estimated at the time of acquisition $10,000 Residual Value revised estimate on 1 January 2012 Nil Useful Life estimated at the time of acquisition 10 years Useful Life revised estimate on 1 January 2013 8 years Calculate depreciation expense for the years ended 31 December 2011, 2012, 2013 & 2014

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