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Ex. 229 The Barest Clinic purchased a new surgical laser for $80,000. The estimated salvage values $5,000. The laser has a useful life of five
Ex. 229 The Barest Clinic purchased a new surgical laser for $80,000. The estimated salvage values $5,000. The laser has a useful life of five years and the dini expects to use it 10.000 hours was used 1.600 hours in year 1:2.200 hours in year 2: 2400 hours in year 3:1 800 hours in year 42.000 hours in year 5. Instructions (0) Compute the annual depreciation for each of the five years under each of the following methods straight-line. (2) units-of-activity (b) If you were the administrator of the clinic, which method would you deem as most appropriate? Justify your answer. (c Which method would result in the lowest recorted income in the first year? Which method would result in the lowest total reported income over the five-year period? )
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