HEALTHCARE FINANCE

CASE STUDY #3

SLO 7: Understand depreciation expense and the methods used to calculate depreciation

DuPage Hospital purchased an endoscope cleaner at a cost of $18,000 on January 1, 2018. DuPage expected the machine to have a salvage value of $2,000 at the end of its 4-year useful life.

Instructions

Prepare a depreciation schedule using the straight-line method. Be sure to use EXCEL and include columns for accumulated depreciation and net book value. INCLUDED EXCEL FORMULAS AS WORK MUST SHOW FORMULAS.