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16.16 A special-purpose graphics workstation acquired by Busbee Consultants has B = $50,000 with a 4- year recovery period. Tabulate the values for SL depreciation, accumulated depreciation, and book value for each year if (a) S = 0 and (b) S = $16,000.
(a) If S = 0 | |
Straight-line depreciation per year = ( Cost - Salvage ) / Useful life = ( 50000 - 0 ) / 4 | 12500 |
Year | Depreciation | Accumulated depreciation | Book value |
1 | 12500 | 12500 | 37500 |
2 | 12500 | 25000 | 25000 |
3 | 12500 | 37500 | 12500 |
4 | 12500 | 50000 | 0 |
(b) If S = 16000 | |
Straight-line depreciation per year = ( Cost - Salvage ) / Useful life = ( 50000 - 16000 ) / 4 | 8500 |
Year | Depreciation | Accumulated depreciation | Book value |
1 | 8500 | 8500 | 41500 |
2 | 8500 | 17000 | 33000 |
3 | 8500 | 25500 | 24500 |
4 | 8500 | 34000 | 16000 |
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