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solve by hand 16.16 A special-purpose graphics workstation acquired by Busbee Consultants has B = $50,000...

solve by hand

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.

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Answer #1
(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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