Revision of Depreciation Equipment with a cost of $354,500 has an estimated residual value of $38,000, has an estimated useful life of 15 years, and is depreciated by the straight-line method. a. Determine the amount of the annual depreciation. 21,100 V b. Determine the book value after 10 full years of use. c. Assuming that at the start of the year 11 the remaíning life is estimated to be 8 years and the residual value is estimated to be $38,700, determine the depreciation expense for each of the remaining 8 years. Feedback Check My Viork Straight-line depreciation allocates the depreciable cost of the asset equally over the expected useful life. The book value is the foxed asset cost less accumulated depreciation. Revising depreciation is necessary when estimates of residual values and/or useful lives of foced assets change due to abnormal wear and tear or obsolescence
Revision of Depreciation Equipment with a cost of $354,500 has an estimated residual value of $38,000, has an estimated useful life of 15 years, and is depreciated by the straight-line method. a. Determine the amount of the annual depreciation. 21,100 V b. Determine the book value after 10 full years of use. c. Assuming that at the start of the year 11 the remaíning life is estimated to be 8 years and the residual value is estimated to be $38,700, determine the depreciation expense for each of the remaining 8 years. Feedback Check My Viork Straight-line depreciation allocates the depreciable cost of the asset equally over the expected useful life. The book value is the foxed asset cost less accumulated depreciation. Revising depreciation is necessary when estimates of residual values and/or useful lives of foced assets change due to abnormal wear and tear or obsolescence
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter10: Long-lived Tangible And Intangible Assets
Section: Chapter Questions
Problem 19E
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Transcribed Image Text:Revision of Depreciation
Equipment with a cost of $354,500 has an estimated residual value of $38,000, has an estimated useful life of 15 years, and is depreciated
by the straight-line method.
a. Determine the amount of the annual depreciation.
21,100 V
b. Determine the book value after 10 full years of use.
c. Assuming that at the start of the year 11 the remaíning life is estimated to be 8 years and the residual value is estimated to be $38,700,
determine the depreciation expense for each of the remaining 8 years.
Feedback
Check My Viork
Straight-line depreciation allocates the depreciable cost of the asset equally over the expected useful life.
The book value is the foxed asset cost less accumulated depreciation.
Revising depreciation is necessary when estimates of residual values and/or useful lives of foced assets change due to abnormal wear and tear or
obsolescence
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