Bosh Company purchased a piece of equipment at the beginning of 2009 The equipment cost $502,000 It has an estimated service life of 8 years and an expected salvage value of $70,000 The sum of the years digits method of depreciation is being used Someone has already correctly prepared a depreciatio...

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Bosh Company purchased a piece of equipment at the beginning of 2009. The equipment cost $502,000. It

Question:

Bosh Company purchased a piece of equipment at the beginning of 2009. The equipment cost $502,000. It has an estimated service life of 8 years and an expected of $70,000. The sum-of-the-years’-digits method of depreciation is being used. Someone has already correctly prepared a depreciation schedule for this asset. This schedule shows that $60,000 will be depreciated for a particular calendar year.
Instructions
Show calculations to determine for what particular year the depreciation amount for this asset will be $60,000.

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...