Question

From the following facts, complete a depreciation schedule by using the straight-line method: (Input all amounts as positive values.)

Cost of Honda Accord Hybrid	$	39,600
Residual value	$	5,800
Estimated life	8 years

End of year	Cost of Honda Accord	Depreciation expense for the year	Accumulated depreciation at end of year	Book value at end of year
1	$	$	$	$
2	$	$	$	$
3	$	$	$	$
4	$	$	$	$
5	$	$	$	$
6	$	$	$	$
7	$	$	$	$
8	$	$	$	$

Answer 1

End of year	Cost of Honda Accord	Depreciation expense for the year	Accumulated depreciation at end of year	Book value at end of year
1	39,600	4,225	4,225	35,375
2	39,600	4,225	8,450	31,150
3	39,600	4,225	12,675	26,925
4	39,600	4,225	16,900	22,700
5	39,600	4,225	21,125	18,475
6	39,600	4,225	25,350	14,250
7	39,600	4,225	29,575	10,025
8	39,600	4,225	33,800	5,800
Note 1:
Depreciation expense per year = (Original cost - salvage value )/life of asset
=(39600-5800)/8
4225