Earthmoving equipment with a first cost of $150,000 is expected to have a life of 10 years The salvage value is expected to be 10 of the first cost Calculate (a) By hand (b) By spreadsheet the depreciation charge and book value for years 2 and 7 using the SYD method ...

a B 150000 n 10 S 15000 and SUM 55 b ...

Earthmoving equipment with a first cost of $150,000 is expected to have a life of 10 years.

Question:

Earthmoving equipment with a first cost of $150,000 is expected to have a life of 10 years. The is expected to be 10% of the first cost. Calculate
(a) By hand
(b) By spreadsheet the depreciation charge and book value for years 2 and 7 using the SYD method.

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...