Solo Country Club purchased a new computer system on October 1, 2008, at a cost of $96,000 The company estimated that the machine would have a salvage value of $12,000 The system is expected to be used for 10,000 working hours during its five year life Compute the depreciation expense under the fol...

a Straightline method 96000 12000 5 16800 per year 2008 depreciation ...

Solo Country Club purchased a new computer system on October 1, 2008, at a cost of $96,000.

Question:

Solo Country Club purchased a new computer system on October 1, 2008, at a cost of $96,000. The company estimated that the machine would have a of $12,000. The system is expected to be used for 10,000 working hours during its five-year life.
Compute the depreciation expense under the following methods for the year indicated:
(a) Straight-line for 2008.
(b) Units-of activity for 2008, assuming system usasge was 1,700 hours.
(c) Declining-balance using double the straight-line rate for 2008 and 2009.

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...