Chapter 17.I, Problem 2RE

BuyFind*arrow_forward*

8th Edition

Robert Brechner + 1 other

ISBN: 9781305585447

Textbook Problem

*Note: Round answers to the nearest cent when necessary.*

**Calculate the total cost, total depreciation, and annual depreciation for the following assets by using the straight-line method.**

Cost |
Shipping Charges |
Setup Charges |
Total Cost |
Salvage Value |
Estimated Useful Life (years) |
Total Depreciation |
Annual Depreciation |

$88,600 | $625 | $2,500 | $9,000 | 7 |

To determine

**To calculate:** The total cost, total depreciation and annual depreciation of the asset when the asset purchased cost is

Explanation

**Given Information:**

The cost of the asset is

**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.

Step 3: Calculate the annual depreciation by dividing estimated useful life from the total amount of depreciation

**Calculation:**

Consider the provided cost of asset is

The total cost of the asset is:

Now, using the above formula, the total cost of the asset is:

Sect-17.I P-1TIESect-17.I P-2TIESect-17.I P-3TIESect-17.I P-4TIESect-17.I P-1RESect-17.I P-2RESect-17.I P-3RESect-17.I P-4RESect-17.I P-5RESect-17.I P-6RE

Sect-17.I P-7RESect-17.I P-8RESect-17.I P-9RESect-17.I P-10RESect-17.I P-11RESect-17.I P-12RESect-17.I P-13RESect-17.I P-14RESect-17.I P-15RESect-17.I P-16RESect-17.I P-17RESect-17.I P-18RESect-17.I P-19RESect-17.I P-20RESect-17.I P-21RESect-17.I P-22RESect-17.I P-23RESect-17.I P-24RESect-17.I P-25RESect-17.I P-26RESect-17.I P-27RESect-17.I P-28RESect-17.I P-29RESect-17.I P-30RESect-17.I P-31RESect-17.I P-32RESect-17.I P-33RESect-17.II P-5TIESect-17.II P-6TIESect-17.II P-1RESect-17.II P-2RESect-17.II P-3RESect-17.II P-4RESect-17.II P-5RESect-17.II P-6RESect-17.II P-7RESect-17.II P-8RECh-17 P-1CRCh-17 P-2CRCh-17 P-3CRCh-17 P-4CRCh-17 P-5CRCh-17 P-6CRCh-17 P-7CRCh-17 P-8CRCh-17 P-9CRCh-17 P-10CRCh-17 P-11CRCh-17 P-12CRCh-17 P-13CRCh-17 P-14CRCh-17 P-1ATCh-17 P-2ATCh-17 P-3ATCh-17 P-4ATCh-17 P-5ATCh-17 P-6ATCh-17 P-7ATCh-17 P-8ATCh-17 P-9ATCh-17 P-10ATCh-17 P-11ATCh-17 P-12ATCh-17 P-13ATCh-17 P-14ATCh-17 P-15AT

Intermediate Algebra

Calculus: Early Transcendentals

Calculus: An Applied Approach (MindTap Course List)

Essentials of Statistics for The Behavioral Sciences (MindTap Course List)

Finite Mathematics and Applied Calculus (MindTap Course List)

Single Variable Calculus

Single Variable Calculus: Early Transcendentals, Volume I

Understanding Basic Statistics

Elementary Technical Mathematics

Probability and Statistics for Engineering and the Sciences

Multivariable Calculus

Mathematical Excursions (MindTap Course List)

Precalculus: Mathematics for Calculus (Standalone Book)

Statistics for The Behavioral Sciences (MindTap Course List)

Finite Mathematics

Elementary Geometry For College Students, 7e

Calculus (MindTap Course List)

Calculus: Early Transcendental Functions

Applied Calculus

Essentials Of Statistics

Mathematical Applications for the Management, Life, and Social Sciences

Applied Calculus for the Managerial, Life, and Social Sciences: A Brief Approach

Calculus: Early Transcendental Functions (MindTap Course List)

Single Variable Calculus: Early Transcendentals

Elements Of Modern Algebra

Calculus of a Single Variable

Trigonometry (MindTap Course List)

Elementary Geometry for College Students

Study Guide for Stewart's Multivariable Calculus, 8th

Finite Mathematics for the Managerial, Life, and Social Sciences

Study Guide for Stewart's Single Variable Calculus: Early Transcendentals, 8th

Mathematics For Machine Technology

Calculus (MindTap Course List)

Research Methods for the Behavioral Sciences (MindTap Course List)

STATISTICS F/BUSINESS+ECONOMICS-TEXT

Research Methods for the Behavioral Sciences (MindTap Course List)

Introduction To Statistics And Data Analysis

Multivariable Calculus

Statistics for Business & Economics, Revised (MindTap Course List)

College Algebra (MindTap Course List)