Ask Question
31 August, 10:17

Computer equipment was acquired at the beginning of the year at a cost of $54,500. It had an estimated residual value of $4,100 and an estimated useful life of five years. Determine the (a) depreciable cost, (b) straight-line rate, and (c) annual straight-line depreciation.

+3
Answers (1)
  1. 31 August, 10:27
    0
    a.$50,400

    b. 20% depreciation per year

    c. $10,080 per year

    Explanation:

    a) The depreciable cost is the total purchase cost minus the residual value:

    $54,500-$4,100 = $50,400

    b) The straight - line rate is the rate of depreciation per year. Since here the usefull life is 5 year, the depreciation rate is 1/5 per year = 0.2 per year

    = 20 % per year

    c) The annual straight-line depreciation is the depreciable cost multiply by the depreciation rate:

    Annual straight-line depreciation = 0.2*50,400 = $10,080
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Computer equipment was acquired at the beginning of the year at a cost of $54,500. It had an estimated residual value of $4,100 and an ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers