Question

Use the information below to answer the questions that follow. Enter your answers using digits only...

Use the information below to answer the questions that follow. Enter your answers using digits only - no dollar signs, commas, or decimal points. The business's year-end is December 31.
Cost of equipment = 269000
Useful life in years = 8
Residual value = 5000
Date purchased = November 1
What is the depreciation expense per year

Homework Answers

Answer #1
Depreciation per year by SLM: = (Original Cost - Salvage value )/Estimated life
    =(269000- 5000)/8
33000 (Depreciation expense per year
33000 is the depreciation for the whole year and as the equipment purchased on Nov 1 then depreciation for only 2 months (Nov and Dec) is to be taken
Depreciation for first year would be = 33000/12*2
5500
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