The New Hospital has raised money for new oncology wing. The hospital has also acquired medical diagnostic equipment that cost $500,000. In addition, the hospital paid $15,000 to ship the equipment from the manufacturer and $40,000 to install the equipment. The equipment is expected to have 6-year useful life and a $30,000 salvage value. Calculate the 6 years of depreciation, using SL straight line.

College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter18: Accounting For Long-term Assets
Section: Chapter Questions
Problem 6CE
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The New Hospital has raised money for new oncology wing. The hospital has also acquired medical diagnostic equipment that cost $500,000. In addition, the hospital paid $15,000 to ship the equipment from the manufacturer and $40,000 to install the equipment. The equipment is expected to have 6-year useful life and a $30,000 salvage value. Calculate the 6 years of depreciation, using SL straight line. 

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