Ask Question
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)
  1. 27 October, 23:07
    0
    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
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “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 ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers