Question
Revision of Depreciation Equipment with a cost of $660,000 has an estimated residual value of $60,000, has an estimated useful life of 40 years, and
Revision of Depreciation
Equipment with a cost of $660,000 has an estimated residual value of $60,000, has an estimated useful life of 40 years, and is depreciated by the straight-line method.
a. Determine the amount of the annual depreciation. _____________
b. Determine the book value at the end of the 18 full years of use.______________
c. Assuming that at the start of the year 19 the remaining life is estimated to be 28 years and the residual value is estimated to be $48,400, determine the depreciation expense for each of the remaining 28 years. _______________
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