Rainwater Harvester uses straight-line depreciation for its solar panel costing $45,000, with an estimated five-year life and
Question:
Rainwater Harvester uses straight-line depreciation for its solar panel costing $45,000, with an estimated five-year life and a $5,000 salvage value. At the beginning of its third year, the company determines that the solar panel has four more years of remaining useful life, after which it will have an estimated $1,000 salvage value.
1. Compute depreciation for the solar panel for each of the first two years of its useful life.
2. Compute book value of the solar panel at the end of its second year.
3. Compute depreciation for the solar panel for each of the final four years given the revised estimates.
Salvage ValueSalvage 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...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
1 Original cost of solar panel 45000 Less salvage value 5000 Amount to be depreciated 40000 De...View the full answer
Answered By
Asim farooq
I have done MS finance and expertise in the field of Accounting, finance, cost accounting, security analysis and portfolio management and management, MS office is at my fingertips, I want my client to take advantage of my practical knowledge. I have been mentoring my client on a freelancer website from last two years, Currently I am working in Telecom company as a financial analyst and before that working as an accountant with Pepsi for one year. I also join a nonprofit organization as a finance assistant to my job duties are making payment to client after tax calculation, I have started my professional career from teaching I was teaching to a master's level student for two years in the evening.
My Expert Service
Financial accounting, Financial management, Cost accounting, Human resource management, Business communication and report writing. Financial accounting : • Journal entries • Financial statements including balance sheet, Profit & Loss account, Cash flow statement • Adjustment entries • Ratio analysis • Accounting concepts • Single entry accounting • Double entry accounting • Bills of exchange • Bank reconciliation statements Cost accounting : • Budgeting • Job order costing • Process costing • Cost of goods sold Financial management : • Capital budgeting • Net Present Value (NPV) • Internal Rate of Return (IRR) • Payback period • Discounted cash flows • Financial analysis • Capital assets pricing model • Simple interest, Compound interest & annuities
65+ Reviews
86+ Question Solved
Related Book For 
Financial Accounting Information for Decisions
ISBN: 978-1259917042
9th edition
Authors: John J. Wild
Question Posted:
