A PPE asset is acquired in 2011 at a cost of

$20,000. Its estimated service life is 10 years, and its estimated residual value is $2,000:

(a) The estimated depreciable cost of the asset is $

(b) If the straight-line depreciation method is used, the depreciation rate for this asset is

%.

(c) What amount will be recorded as depreciation expense in each year of the asset’s life?

$

(d) What account will be debited and what account will be credited to record this depreciation expense?

Dr.

Cr.

(e) After 5 years have elapsed, how would this asset be reported on the balance sheet?

(1) $

(2) $

(3) $