A company used straight-line depreciation for an item of equipment that cost $16,950, had a salvage value of $4,200 and a six-year useful life. after depreciating the asset for three complete years, the salvage value was reduced to $1,695 but its total useful life remained the same. determine the amount of depreciation to be charged against the equipment during each of the remaining years of its useful life:

Question

Katelynn Sweeney

Business

27 October, 22:52

A company used straight-line depreciation for an item of equipment that cost $16,950, had a salvage value of $4,200 and a six-year useful life. after depreciating the asset for three complete years, the salvage value was reduced to $1,695 but its total useful life remained the same. determine the amount of depreciation to be charged against the equipment during each of the remaining years of its useful life:

+5

Answers (1)

Know the Answer?

Jade Wright · Answer 1

Depreciation = (equipment cost-salvage value) / useful life

Depreciation = (16,950-4,200) : 6

=2,125 per year

Book value after 3 years

=16,950-2,125*3

=10,575

Now find the amount of depreciation to be charged against the equipment during each of the remaining years of its useful life

Depreciation = (equipment cost-salvage value) / useful life

Depreciation = (10,575-1,695) : 3

=2,960