The York City Hospital has just acquired new equipment. The equipment cost

$$4,250,000,$ and the organization spent $$135,000$ on upgrading the physical plant to the new

equipment will be located in$.$ The equipment is expected to have a $10-$year useful life and

a salvage value of $10\%($i$.$e$.,$ $$425,000).$

Calculate depreciation using the Straight$-$Line Method

$$135,000+$ $$4,250,000,=4,385,000$

$4,385,000-425,000=3,960,000$

I. What is the depreciable base you will use for the calculations?

$3,960,000/2=1,980,000$

Ii$.$ Calculate the first $2$ years of depreciation, using SL$.$

$1,980,000$ per year

B$.$ Calculate depreciation using the Sum of Years Digits Method.

I. What is the depreciable base you will use for the calculations?

Ii$.$ Calculate the first $4$ years of the depreciation, using SYD method.

C$.$ Calculate depreciation using the Double Declining Balance method.

I. What is the depreciable base you will use for the calculations?

Ii$.$ Calculate the first $4$ years of depreciation, using the DDB method.

Answer rating: 100% (QA)

A Depreciation using the StraightLine Method I The depreciable base The depreciable base is the cost of the equipment minus the salvage value So its D... View the full answer