Depreciation is used when purchasing a very costly piece of equipment $($Long Term Asset$)$ The purpose is to spread out $($allocate$)$ the high cost over a period of years known as the estimated useful life of the equipment. By doing this, the organization includes a portion of the total expense on a yearly basis which will result in lower expense on an annual basis rather than a very high cost in one vear.

Using the worksheet below, complete the following:

$1$ Depreciation Expense per year

$2$ Accumulated Depreciation per year

$3$ Net Remaining Undepreciated Cost

Assumptions are as follows:

$A^{\text{'}\text{'}}$ Cost to be Depreciated

$1,200,000$

$B^{\text{'}}$ Estimated useful life of the equipment

C Salvage Value

$\backslash$table$[[$ of $10$ years$],[30,000]]$

$\backslash$table$[[$Year$,\backslash$table$[[$Cost to be$],[$Depreciated$]],\backslash$table$[[$Depreciation Accumulated$],[$Exp Per Yr$]],\backslash$table$[[$Net Remaining$]],],[1,1,200,000,,,],[2,,,,],[3,,,,],[4,,,,],[5,,,,],[6,,,,],[7,,,,],[8,,,,],[9,,,,],[10,,,,],[,,,,]]$