   Chapter 17.I, Problem 10RE ### Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447

#### Solutions

Chapter
Section ### Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447
Textbook Problem

# White Mountain Supply Company purchases warehouse shelving for $18,600. Shipping charge were$370. and assembly and setup amounted to $575. The shelves are expected to last for 7 years and have a scrap value of$900. Using the straight-line method of depreciation.a. What is the annual depreciation expense of the shelving?b. What is the accumulated depreciation after the third year?c. What is the book value of the shelving after the fifth year?

(a)

To determine

To calculate: The annual depreciation of the warehouse shelving when the warehouse shelving purchased cost is $18,600. Explanation Given Information: The cost of the warehouse shelving is$18,600 and the shipping and the setup charges were $370 and$575, respectively. The scrap value of warehouse shelving is $900 and expected to last 7 years. Formula used: The steps to calculate annual depreciation by straight line method are as follows: Step 1: Calculate the total cost. Step 2: Calculate the total amount of depreciation by subtracting salvage value from the total cost by using the formula, Total amount of depreciation=Total costSalvage cost Step 3: Calculate the annual depreciation by dividing estimated useful life from the total amount of depreciation given by the formula, Total amount of annual depreciation=Total depreciationestimated useful life Calculation: Consider the provided cost of warehouse shelving is$18,600 and the shipping and the setup charges were $370 and$575, respectively

(b)

To determine

To calculate: The accumulated depreciation after third year of the warehouse shelving when the warehouse shelving purchased cost is $18,600. (c) To determine To calculate: The book value after the fifth year of the warehouse shelving when the warehouse shelving purchased cost is$18,600.

### Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

#### The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

#### Simplify the expressions in Exercises 97106. (xy)1/3(yx)1/3

Finite Mathematics and Applied Calculus (MindTap Course List)

#### In Exercises 1-4, perform the operations if possible. 

Finite Mathematics for the Managerial, Life, and Social Sciences

#### True or False: is monotonic.

Study Guide for Stewart's Multivariable Calculus, 8th

#### How does a full-text database differ from other databases?

Research Methods for the Behavioral Sciences (MindTap Course List) 