Chapter $8$

Exploration $8\mathrm{.}2$b $-$ Strainght Line Method $(13)$

Goal: Learn how to calculate depreciation using the straight$-$line method.

Instructions: You are given information about a plant and equipment asset. You must calculate depreciation for that asset using the straight$-$line method.

Do not include the $ sign in your answers.

Your answers must be correct to exactly $2$ decimal places.

Do not include the, indicating thousands in your answers.

Benson Inc. estimated that the vehicle that they recently purchased will have a residual value of $$27,300$ at the end of its $3-$year useful life. The vehicle was purchased on January $1,2024$ for a total cost of $$91,800.$ Benson Inc.$\text{'}$s yearend is December $31.$ For simplicity, assume that the vehicle is depreciated as one unit; it will not be broken down into its parts and depreciated.

Calculate depreciation for each year of the vehicle's estimated life using the straight$-$line method.