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Is this the correct way to find depreciation allowance and book value for each year using straight line method?: equations used: Depreciation allowance= d t
Is this the correct way to find depreciation allowance and book value for each year using straight line method?: equations used:
Depreciation allowance= dt = (P-F)/n
Book value = Bt = P - (t*dt)
Cost: | $20,000.00 |
Depreciable life: | 5 |
Salvage value in year 5: | $1,500.00 |
Year | d_t = (P-F)/n | B_t = P - (t*d_t) |
0 | $20,000.00 | |
1 | $18,500.00 | $1,500.00 |
2 | $9,250.00 | $1,500.00 |
3 | $6,166.67 | $1,500.00 |
4 | $4,625.00 | $1,500.00 |
5 | $3,700.00 | $1,500.00 |
I used the year as the values for n and t.
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