Question
Buena Vista Regional Hospital purchased a new MRI machine having the following characteristics: Cost $1,153,000 Estimated useful life (years) 5 Residual value $238,000 Furthermore, the
Buena Vista Regional Hospital purchased a new MRI machine having the following characteristics:
Cost $1,153,000
Estimated useful life (years) 5
Residual value $238,000
Furthermore, the hospital estimates the machine's usage (in hours) to be the following:
Total hours of service during useful life ....................................19,600
Hours of service during year 1 ............................................................3,364
Hours of service during year 2 ............................................................3,748
Hours of service during year 3 ............................................................3,496
Hours of service during year 4 ............................................................4,112
Hours of service during year 5 ............................................................4,880
Use the straight-line method of depreciation to complete the following table.
Book value at beginning of year Depreciation expense for year Accumulated depreciation at end of yearBook value at end of year
Year 1
Year 2
Year 3
Year 4
Year 5
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